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Carlos is considering the purchase of preference shares in Yamasaki Ltd. The preference shares will pay preference dividends of $2.72 per share each year for

Carlos is considering the purchase of preference shares in Yamasaki Ltd. The preference shares will pay preference dividends of $2.72 per share each year for the life of the company. Carlos's required rate of return is 14.5% pa.

Calculate the intrinsic value of a preference share in Yamasaki Ltd.

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