In order to determine the value of a share of preference shares, the discount rate used is the annual dividend percent.

Name: In order to determine the value of a share of preference shares, the discount rate used is the annual dividend percent.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

The discount rate used for preference shares is typically the required rate of return, which takes into account various factors such as the company's risk level and market conditions, rather than just the annual dividend percent.

In Order to Determine the Value of a Share of Preference