World Wide Interlink Corp.has decided to undertake a large project.Consequently, there is a need for additional funds.The financial manager plans to issue preference shares with an annual dividend of $5 per share.The shares will have a par value of $30.If investors' required rate of return on this investment is currently 20%, what should the preference shares's market value be?
A) $10
B) $15
C) $20
D) $25
Correct Answer:
Verified
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