DD co Specimen dec 16

I have a question in calculating growth. I have understood examiners answer that how he has calculated growth rate , but I just want to ask can't we calculate growth in the following way , however, the answer is not coming correct, can you please tel me what mistake I am doing here? We know that we can calculate growth by gordon's retention model g = retention ratio x return on equity In this question payout ratio is given of 40% which implies that retention ratio is 60% Now in question number of ordinary shares issued are 25m. And question says that current dividend per share of company is $0.5 per share. So in this way total dividends paid would be 25m x 0.5 = $12500000. As we know that Dividend paid = PAT x payout ratio so by using this formula we can calculate PAT= 12500000 / 0.4 = $31250000. Now we know Retained earnings or profit = PAT - dividend paid so Retained earnings = 31250000 - 12500000 = $18750000 Return on investment = PAT / [ordinary share capital + reserves] Ret on inv = 31250000 / [60000000 + 18750000] = 0.4 g= 0.6 x 0.4 = 0.24