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John Lark Inc. just issued some new preference shares. The issue will pay a 7 annual dividend in perpetuity, beginning 5 years from now. Required:

John Lark Inc. just issued some new preference shares. The issue will pay a

7

annual dividend in perpetuity, beginning

5

years from now.

Required:

If the market requires an

8

per cent return on this investment, how much do preference shares cost today

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