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A Particular (Perpetual) Preference Share Has an Annual Preference Dividend

Question 25

Multiple Choice

A particular (perpetual) preference share has an annual preference dividend of 50p, and the investors' required rate of return is 8 per cent. What is the cost of the preference share?


A) 625p
B) 400p
C) 160p
D) 500p

Correct Answer:

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