A company issued 8.5% preference shares at R80 each. What is the intrinsic value of a preference share assuming a 6.5% required rate of return? ○ a. 94.12 b. R104.62 OC. R123.08 Od. R130.77
A company issued 8.5% preference shares at R80 each. What is the intrinsic value of a preference share assuming a 6.5% required rate of return? ○ a. 94.12 b. R104.62 OC. R123.08 Od. R130.77
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A company issued 8.5% preference shares
at R80 each. What is the intrinsic value of
a preference share assuming a 6.5%
required rate of return?
○ a.
94.12
b. R104.62
OC. R123.08
Od. R130.77
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