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Josh has been offered the opportunity to buy some preference shares in A.C. Hatrick Chemicals Limited. Preference shares are safer than ordinary shares, so Henry
Josh has been offered the opportunity to buy some preference shares in A.C. Hatrick Chemicals Limited. Preference shares are safer than ordinary shares, so Henry thinks that a suitable value for the required rate of return for these shares is 7% per annum. The company will pay an annual dividend at the end of each year... The dividend will be $1.50 per share, and is forecast to be paid forever. Based on this information, one preference share in A.C. Hatrick is worth approximately Select one: a. $20.47 b. $22.87 c. $24.19 d. $21.43
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