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Johnson Ltd has an issue of perpetual preference shares outstanding each with a face value of...

Johnson Ltd has an issue of perpetual preference shares outstanding each with a face value of $50 and a fixed dividend rate of 7.6% each year. If investors require a return of 10.5% on the security, what price would we expect? What would you do if the price on the securities exchange were $44.53?

Please do not use excel. Please show the formula you are using. Also please show your calculations. Please thoroughly explain your answer.

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