Question: Pacific Plc has preference shares in issue with a par value of 6 each and a preference dividend rate of 8%. How much would an

  1. Pacific Plc has preference shares in issue with a par value of 6 each and a preference dividend rate of 8%.

    How much would an investor with a 15% required rate of return be willing to pay for one of these shares today?

    0.42

    6.86

    40.00

    3.20

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