Question 329 DDM, expected and historical returns
In the dividend discount model:
P0=d1r−g
The pronumeral g is supposed to be the:
(a) Expected future growth rate of the dividend.
(b) Actual historical growth rate of the dividend.
(c) Expected future growth rate of the total required return on equity r.
(d) Actual historical growth rate of the market share price.
(e) Actual historical growth rate of the return on equity (ROE) defined as (Net Income / Owners Equity).