Mirton Ltd has non-cumulative, non-redeemable preference shares in issue. The issue price was R1.00 each and the coupon preference dividend rate is 12% per annum, payable once a year in arrears. The company has not paid out a dividend in recent years but expects to recommence dividend payments in two years’ time from today. What is the value of each preference share if similar preference shares are quoting yields of 9% per annum?

Mirton Ltd has non-cumulative, non-redeemable preference shares in issue. The issue price was R1.00 each and the coupon preference dividend rate is 12% per annum, payable once a year in arrears. The company has not paid out a dividend in recent years but expects to recommence dividend payments in two years’ time from today. What is the value of each preference share if similar preference shares are quoting yields of 9% per annum?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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