Calculate the current market value of these shares

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Question - The balance sheet of Company A shows 10,000 preference shares at an issue price of R200 each. The annual preference dividend is 20% per share which is expected to remain the same for the next two years. Thereafter dividends will increase to R45 per share. Similar preference shares are trading at a return to shareholders of 18%. Calculate the current market value of these shares.

Reference no: EM133182739

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