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A Firm Has $3 Million Market Value and It Sells

question 101

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A firm has $3 million market value and it sells preference shares at $100 per share. If the annual dividend on the preference share is $9 and it trades at $95, what is the cost of preference share capital?


Definitions:

System Restore

A feature in Microsoft Windows that allows users to revert their computer's state to a previous point in time, aiming to recover from system malfunctions or other issues.

Android Cell Phone

A smartphone that operates using the Android operating system, developed by Google, featuring a wide range of applications and services.

Administrative Share

A network share created automatically by a Windows operating system, intended for administrative purposes and typically hidden from standard users.

Local Share

Something such as a printer, folder, or disc that has been made available across a network.

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