Which of the Following Formulas Is Appropriate to Find the Value

question 72

Multiple Choice

Which of the following formulas is appropriate to find the value of preference share with a fixed dividend?

• A)Value of preference share = Annual Preference share Dividend (1 + growth rate)/Market's Required Return on Preference share
• B)Value of preference share = Annual Preference share Dividend (1 + growth rate)/Market's Required Return on Preference share - growth rate
• C)Value of preference share = Annual Preference share Dividend/Market's Required Return on Preference share
• D)Value of preference share = Annual Preference share Dividend/Investor's Required Return on Preference share

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Definitions:

Changes

The process or act of making or becoming different.

Planned Obsolescence

A business strategy in which products are deliberately designed to have a limited useful life or become outdated quickly, encouraging consumers to purchase new or upgraded products more frequently.

Fordlandia

A failed industrial town founded in the Brazilian Amazon by American industrialist Henry Ford in the 1920s, intended to secure a source of cultivated rubber for his automobile manufacturing operations.

Eugenics

A discredited and controversial social philosophy advocating the improvement of human genetic traits through selective breeding or genetic manipulation.