Common stock

valuelong dashZero

growthPersonal Finance ProblemKelsey Drums, Inc., is a well-established supplier of fine percussion instruments to orchestras all over the United States. The company's class A common stock has paid a dividend of

$9

per share per year for the last

15

years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased

200

shares of Kelsey class A common

7

years ago at a time when the required rate of return for the stock was

11%.

She wants to sell her shares today. The current required rate of return for the stock is

8%.

How much total capital gain or loss will Sally have on her shares?