Question
Common Stock Value - Zero Growth: Kelsey Drums, INC is a well established supplier of fine percussion instruments to orchestras all over the United States.
Common Stock Value - Zero Growth: 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 $9 per share for the last 20 years. Management expects to continue to pay at that amount for the forseeable future. Sally Talbot purchased 100 shares of kelsey class A common stock 10 years ago at a time when the required rate of return for the stock was 16%. She wants to sell her shares today. The current required rate of return for the stocks is 11%. How much total capital gain or loss will Sally have on her shares?
The value of the stock when Sally purchased it was $per share. (Round to the nearest cent.)Step by Step Solution
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