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

$3.28

per share per year for the last

16

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

300

shares of Kelsey class A common

7

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

8.5%.

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

13.50%.

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

Question content area bottom

Part 1

The value of the stock when Kim purchased it was

$enter your response here

per share.(Round to the nearest cent.)