Question: Solve the question using an easy to understand approach 31. AS has 5m $1 ordinary shares and 1m 7% $1 preferred shares currently in issue.

Solve the question using an easy to understand approach

31. AS has 5m $1 ordinary shares and 1m 7% $1 preferred shares currently in issue. The ordinary shares are currently trading at $1.20 cum div and the preferred shares are currently trading at $1.12 cum div. The expected growth rate is 9%. The cost of the preferred shares to the nearest 0.1% is: *

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