2009 Mock Exam Question #5 A ii & iii

A i) The answer used 4.6% which is the historical compounded growth, shouldn’t it be “expected” nominal earnings growth (i + g)? 2.7 + 2.5 = 5.2% ? A iii) The answer again used historical E®, 11.2%, shouldn’t E® be “expected” rate of return on equity? Thanks in advance…