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 prepared and published by security analysts. Use the retention growth model. Suppose Kirby is currently distributing 50.00% of its earnings in the form of cash dividends. It has also historically generated an aveareg rerurn on equity (ROE) of 20.00% Kirby's estimatred growth rate is --------? a) 20.50% b) 10.00% c) 70.00% d) 19.50%