Suppose you own 500 shares of xyz cos preference shares the


Suppose you own 500 shares of XYZ Co's preference shares. The preference shares currently sell for $3.80 per share and pays annual dividends of $0.75 per share.

a) What is your expected return?

b) If you require an 8% return, given the current price, should you sell or buy more preference shares?

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Financial Management: Suppose you own 500 shares of xyz cos preference shares the
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