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i am not sure how to calculate the ratios as the problem has not given me the %. Could you please help. than you. Estimating

i am not sure how to calculate the ratios as the problem has not given me the %. Could you please help. than you.

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Estimating growth rates It is often difficult to estimate the expected future dividend growth rate for use in estimating the Dust 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 Ford is ourrently distributing ?5.DCI of its earnings in the form of cash dividends. It has also historically generated an average return on equity {ROE) of' 24.00. Ford's estimated growth rate is

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