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MH Ltd's preference shares are selling at $54 on the market and pay an annual dividend of $4.20 per share.

i. What is the expected rate of return?

ii. If an investor's required rate of return is 9 percent, what is the value per share for that investor?

iii. Considering the investor's required rate of return, do these shares seem to be a desirable investment?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M952406

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