Exxon Mobil Corp. has paid out the following dividends in the past 12 years:

Year Quarterly dividend Annual dividend

2019 0.87 3.48

2018 0.82 3.28

2017 0.77 3.08

2016 0.75 3.00

2015 0.73 2.92

2014 0.69 2.76

2013 0.63 2.52

2012 0.57 2.28

2011 0.47 1.88

2010 0.44 1.76

2009 0.42 1.68

2008 0.40 1.60

The average return on equity (ROE) for Exxon Mobil in the past five years was 9.82% and the average dividend payout ratio was 82.39%. The stock has a forward dividend yield of 5.11%. These data are from Morningstar.com.

2. Use four methods (arithmetic average growth rate, compound average growth rate, regression, and earnings retention model) to estimate the dividend growth rate for Exxon Mobil based on the above information given.
4. Assuming that investors require a 12% return (based on CAPM) on its stock, estimate dividend growth rate based on the constant dividend growth model (Hint: r = (D₁/P₀)+g, so g = r - (D₁/P₀)).
6. Explain your final estimate based on (a) and (b).