Suncorp Limited shares pay a fixed annual dividend of $3.00.Because of lower inflation,the market's required yield on this preference share has gone from 12% to 10%.As a result

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When the market's required yield decreases, the value of the preference shares increases. The calculation of the new value is: $3.00 / 10% = $30.00. So, the value of the preference shares increased by $5.00 ($30.00 - $25.00). The dividend amount remains the same at $3.00 per year.

Suncorp Limited Shares Pay a Fixed Annual Dividend of $3