Dazvin Co – Preference Shares

The following financial information relates to Dazvin Co, a company that is listed on a large stock market

$m

Revenue 35.5
Cost of sales (20 0)
Other expenses (8.4)
Finance costs (1.4)
Profit before taxation 5.7
Corporation tax (30%) (1.7)
Profit for the year 4.0

Equity and liabilities $m

Ordinary share capital 26.0
Preference share capital 10.0
Retained earnings 21.5
Total equity 57.5
Non-current liabilities
Long-term borrowings 18.0
Current liabilities
Trade payable 11.1
Total liabilities 29.1
Total equity and liabilities 86.6

The preference share capital consists of irredeemable 6% preference shares with a nominal value of $0.50 per share. The cost of capital of the preference shares is 8%.

The ordinary shares have a nominal value of $1.00 per share. Dazvin Co has a price/earnings ratio of 12 times. Future share price growth on the stock market is expected to be 6% per year

The long-term borrowings consist of 7.5% convertible loan notes with a nominal value of $100 per loan note. These loan notes can be converted at the end of six years into 40 ordinary shares of Dazvin Co, or redeemed on the same date at their nominal value of $100 per loan note. Dazvin Co has a before-tax cost of debt of 6%.

What is the market value of the preference shares of Dazvin Co?

A. $10.71m
B. $7.50m
C. $5.25m
D. $3.75m

I approached the question like this :

Preference shares of 10m / Nominal Value of 0.5 = 20m

20m * Interest of 6% = 1.2m

Prefrence shares MV calculating method — PREFERENCE SHARES / COST OF EQUITY = MV

So , 1.2m / 0.08 cost of equity = 15m which is wrong obv

Can you please help me here