Question: Common stock value - Zero growth Personal Finance Problem Kelsey Drums, Inc., is a well-established supplier of fine percussion instruments to orchestras all over the
Common stock value - Zero growth Personal Finance Problem Kelsey 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 $3.82 per share per year for the last 17 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Amold purchased 100 shares of Kelsey class A common 6 years ago at a time when the required rate of retum for the stock was 7.1\%. She wants to sell her shares today. The current required rate of return for the stock is 11.10%. How much lotal capital gain or loss will Kim have on her shares? The value of the stock when Kim purchased it was S per share. (Round to the nearest cent) The value of the stock if Kim sells her shares today is $ per share. (Round to the nearest cent) The total capital gain (or loss) Kim will have on her shares is $ (Round to the nearest dollar. Enter a positive number for a capital gain and a negative number for a loss.)
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