Table below contains information on the historic earnings per share (EPS) and dividend per share (DPS) for the company. Using the information in the table, calculate the expected dividend growth rate of the company. Answer in the box provided (10 MARKS).

(A) Historical growth rate (5 marks)

PER SHARE DATA	EPS	Dividend
Y2016	2.42	1.52
Y2015	2.55	1.52
Y2014	2.06	1.52
Y2013	2.46	1.37
Y2012	2.00	1.12

(B) Sustainable Growth Rate for 2016 (5 marks)

Assuming that the Return on Equity (ROE) for Flight Centre is 18.7% for the year 2016, calculate what is sustainable growth rate of the company? Answer in the box provided.