• Pan Asia Mining Company’s stock (Ticker: PAMC) is trading at $22.50. • The company has forecasted net income and book value of equity for the coming year to be $1,420,200 and $11,115,000,...

•	Pan Asia Mining Company’s stock (Ticker: PAMC) is trading at $22.50.
•	The company has forecasted net income and book value of equity for the coming year to be $1,420,200 and $11,115,000, respectively.
•	The company has also been paying dividends for the past 8 years and has maintained a dividend payout ratio of 45.00%.

Based on this information, what will be PAMC’s growth rate in earnings and dividends?

Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant?

Long-run earnings growth occurs primarily because firms pay dividends to reward their shareholders for investing in the company.

Jun 07, 2022

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