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Financial Management 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
Financial Management
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 $2.97 per share per year for the last 19 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Amold purchased 400 shares of Kelsey class A common 8 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 5.50%. How much total 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.) Step by Step Solution
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