Paternoster Ltd. is a fishery based in the west coast of the Western Cape. The company harvests seafood such as lobster and crayfish and then refines it to sell to the public. In order to generate more income, Paternoster Ltd.'s board of directors have approved the initiative to expand the company's operations by also opening up a restaurant on the beach, close to the refinery. This is to give the customer an enjoyable and true west-coast experience. To make this expansion possible, external financing will have to be obtained (from outside of the entity). Paternoster Ltd.'s Chief Financial Officer (CFO) has identified two financing sources which will currently fit the company's capital structure.

Preference shares 50 000 Cumulative, redeemable preference shares may be issued. The issue price is R1 each and the coupon dividend of 11% is payable annually. Similar preference shares have a 9.2% required rate of return compounded quarterly. The preference shares will be redeemed in 8 years' time.

Calculate the current value of the cumulative redeemable preference shares.