Question: What is the expected one-year return on MOL Rt shares with a current price of HUF2,810, a one-year dividend growth of 17%, and a dividend yield of 13% when the interest rate is 12%?
Official solution (screenshot attached):
r = Div₍t+1₎/PVₜ + g = 13% + 17% = 30%
My confusion: the question just says "a dividend yield of 13%" — it never specifies whether that 13% is based on the next dividend (Div₍t+1₎, forward-looking) or the most recent dividend (Div_t, trailing). From my understanding, it should be Div_t that needs to be grown by 17% to become D₍t+1₎. But, the solution assumes it's Div₍t+1₎ without explaining why.
My question: Is there a standard convention where "dividend yield" in these problems is always assumed to be forward-looking (Div₍t+1₎/PVₜ) unless stated otherwise? Or is the question just ambiguously worded, and we're meant to infer this purely from the formula format?
