Question
A utility companys preference shares have an annual dividend of 10, a stated par value of 100 and an effective maturity of 20 years owing
A utility company’s preference shares have an annual dividend of £10, a stated par value of £100 and an effective maturity of 20 years owing to a sinking fund requirement. If similar preference share issues have current market yields of 8%,calculate what will be the value of the utility company’s preference shares.
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Intermediate Accounting Volume 2
Authors: Kin Lo, George Fisher
4th Edition
0135220491, 9780135220498
