The average return on equity in the past five years was 9.82% and the average payout ratio was 82.39%. The stock has a forward dividend yield of 5.11%.

Year Qt.Div Yearly Div

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

a. Use four methods (arithmetic average growth rate, compound average growth rate, regression, and earnings retention model) to estimate the dividend growth rate based on the above information given.

b. 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).

c. Explain your final estimate based on (a) and (b).