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Stocks X and Y Have the Following Data A) Stock X Pays a Higher Dividend Per Share Than

question 48

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Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?
XY Price $25$25 Frgected dividend yield 5%3% Required retun 12%10%\begin{array} { l c c } & X & Y \\\text { Price }&\$25&\$25\\\text { Frgected dividend yield } & 5 \% & 3 \% \\\text { Required retun } & 12 \% & 10 \%\end{array}


Definitions:

Agricultural Price And Income Instability

Fluctuations in the prices and incomes in the agricultural sector due to variables like weather conditions, demand changes, and global market forces.

Overallocation Of Resources

A situation where resources are distributed in an inefficient manner, often leading to excess supply and wasted assets.

Freedom To Farm Act

A U.S. law passed in 1996 aimed at deregulating agriculture, giving farmers more decision-making power regarding what to plant by phasing out certain subsidies and restrictions.

Price Supports

Government interventions in markets to establish or support the price of specific goods, often to ensure that farmers receive sufficient income.

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