Estimating growth rates

It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF or DG approach. In general, there are three available methods to generate such an estimate:

Carry forward a historical realized growth rate, and apply it to the future.

Locate and apply an expected future growth rate $3\mathrm{.}0$ and published by security analysts.

Use the retention growth model.

Suppose Pierce is currently distributing $75\%$ of its earn $12\mathrm{.}25$ equity $($ROE$)$ of $12\%.$ Pierce's estimated growth rate is e form of cash dividends. It has also historically generated an average return on $\%$