Palm Beach Beachwear Has $100 Preference Shares That Pay a Dividend

Palm Beach Beachwear has $100 preference shares that pay a dividend of $7.50 per annum.If investors require a return of 9 per cent on shares of a similar risk what price would you expect to pay for these preference shares?

A) $100.00
B) $120.00
C) $91.74
D) $107.50
E) $83.33