Which of the following formulas is appropriate to find the value of preference share with a fixed dividend?
A) Value of preference share = Annual Preference share Dividend (1 + growth rate) /Market's Required Return on Preference share
B) Value of preference share = Annual Preference share Dividend (1 + growth rate) /Market's Required Return on Preference share - growth rate
C) Value of preference share = Annual Preference share Dividend/Market's Required Return on Preference share
D) Value of preference share = Annual Preference share Dividend/Investor's Required Return on Preference share
Correct Answer:
Verified
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