What is the before-tax cost of preference shares

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Problem 1: A preference share pays a constant dividend of $1.64 and is currently priced at $17.98. The corporate tax rate is 30%. What is the before-tax cost of preference shares?

Problem 2: A share has a beta of 1.2. The risk-free rate of return is 4.0% and the risk premium is 10.3%. What is the expected return on the share?

Reference no: EM132882743

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