Question
A company issues $10 million in preference shares which each have a $50 par value and offer a dividend of 6% of par each year,
A company issues $10 million in preference shares which each have a $50 par value and offer a dividend of 6% of par each year, in perpetuity. The share was issued at $49.00. The required annual rate of return of investors was closest to
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
