Question
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
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 $3.67 per share per year for the last 13 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 100 shares of Kelsey class A common 9 years ago at a time when the required rate of return for the stock was 9.5%. She wants to sell her shares today. The current required rate of return for the stock is 12.50%. How much total capital gain or loss will Kim have on her shares?
The value of the stock when Kim purchased it was?
per share.
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