Common stock

valueZero

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

$3.14

per share per year for the last

17

years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased

500

shares of Kelsey class A common

8

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

8.6%.

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

4.60%.

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

The value of the stock when Kim purchased it was

$36.5136.51

per share.(Round to the nearest cent.)The value of the stock if Kim sells her shares today is

$36.5136.51

per share.(Round to the nearest cent.)The total capital gain (or loss) Kim will have on her shares is

$00.

(Round to the nearest dollar. Enter a positive number for a capital gain and a negative number for a loss.)