Growth Rate assumption

[urbannomad]

Hi everyone,
How would i go about calculating a reasonable growth rate assumption over the next three to five years for a company that pays dividends? As in what steps would i take about going to solve such a thing.

Would I perform a WACC calculation? then plug it into PV formula?
something so simple has me baffled beyond belief, any help is greatly appreciated!

[The_Rural_Juror]

What's the exact question?

CAPM model for growth rate approximation. Adjust growth rate by retention ratio.

[urbannomad]

Originally posted by The_Rural_Juror
What's the exact question?

CAPM model for growth rate approximation. Adjust growth rate by retention ratio.

I figured it out!

g = ROE x Retention Ratio

You were on the same track as I

MODS can close this if they like...i had to calculate or assume what the growth rate of a company would be and show my work. and reason why.

Thanks though Juror!