National Grit's preference shares have a par value of $100, sell for $85 and pay $11 each year in dividends.What is the required rate of return?

Name: National Grit's preference shares have a par value of $100, sell for $85 and pay $11 each year in dividends.What is the required rate of return?
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The required rate of return for a preference share can be calculated using the formula: dividend / market price. Here, it is $11 / $85 = 0.129 or 12.9%.

National Grit's Preference Shares Have a Par Value of $100