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Dallas Company just paid a dividend of $2.00 (D0). It expected to increase by 12% per year for the next three years. Growth will slow
Dallas Company just paid a dividend of $2.00 (D0). It expected to increase by 12% per year for the next three years. Growth will slow down to 8% per year for the following three years, and finally slow to a 5% per year thereafter. Your required rate of return is 25% and the expected return of the economy is 8.75%. What is the standard deviation of the expected return?
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