a. Investor ABC wants to buy 1,000 preference shares, P200 par value from Korean Company. According to his sources, the preference shares come with a constant dividend of P30 per share. Investor ABC intends to hold the preference shares long-term and has no plans on selling this I the near future. Investor ABC requires a 15% return on his investment. What is the value of each preference share of Korean Company?

b. Assuming that ABC is also looking at the preference shares of Chinese Company that has par value of P100 with 20% dividend rate. What is the value of each preference share of Chinese Company? What can you recommend to ABC? The Korean Company or the Chinese Company? Why?