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Suppose you own 500 shares of XYZ Co's preference shares. The preference shares currently sell for $3.80 per share and pays annual dividends of $0.75
Suppose you own 500 shares of XYZ Co's preference shares. The preference shares currently sell for $3.80 per share and pays annual dividends of $0.75 per share.
a) What is your expected return?
b) If you require an 8% return, given the current price, should you sell or buy more preference shares?
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