Question: a)In order to value a preference share,we need to know the relevant discount rate.If you were asked to value a preference share for a company

a)In order to value a preference share,we need to know the relevant discount rate.If you were asked to value a preference share for a company listed on the stock exchange, what process would you undertake to determine the appropriate discount rate / risk-adjusted required rate of return?

b)From the brief discussion in the textbook and your further research into how preference shares operate, discuss whether in fact preference shares are indeed a good example of a perpetuity payment.

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