he if the pa 8. Valuing preference shares: Goomadeer Hand Crafts Ltd has an issue of preference shares outstanding that pays a $2.75 dividend every year, in perpetuity. If this issue currently sells for $47.85 per share. What is the required rate of return? LO 7.1 10 Growth rate: the share price of Barrata Italian Foods Ltd is $4560. Investors require a 12.7% rate of return on similar company shares. If Barrata plans to pay dividend of $2.10 next year, what growth rate s expected for the company share price? LO 7.1 12. Share Valuation: Maranoa Cheese will pay a dividend of $1.27 next year. The company has started that it will maintain a constant growth rate of 3.25% forever. If you want a return of 13%, how much you will pay for none Maranoa share? What if your rate of return is 9%? What does this tell you about the relationship between the required rate of return and the share price? LO 7.1 13. Share valuation and PE ratio: the Gilbert-Einasleigh Painting Company has earnings ofs 0.95 per or share. The benchmark PE for the company is 17. What share price would you consider appropriate f the company ? what if the benchmark PE were 24. LO 7.2