The market price of a preference share will be affected by:

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All of the given options can potentially affect the market price of a preference share. The dividend rate is a key factor as it determines the income stream that the shareholder will receive. However, the chance of the company not operating profitably can also have a significant impact on the share price. If there are concerns about the financial stability of the company, investors may demand a higher return, which could push down the price of the preference share. Additionally, changes in interest rates can affect the attractiveness of preference shares relative to other investments. For example, if interest rates rise, investors may be more inclined to switch to fixed-income securities, which could lead to a sell-off of preference shares and a decrease in their price.

The Market Price of a Preference Share Will Be Affected