Preference shareholders' required rate of return = preference dividends/preference share price

Name: Preference shareholders' required rate of return = preference dividends/preference share price
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This formula is correct, as the required rate of return for preference shareholders is the rate of return they expect to receive from their investment in the form of preference dividends divided by the current market value of the preference shares.

Preference Shareholders' Required Rate of Return = Preference Dividends/preference Share