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Need explanation as well. If the rate of return goes up, to price of the stock goes up, correct? P76 Common stock value: Zero growth

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Need explanation as well. If the rate of return goes up, to price of the stock goes up, correct?

image text in transcribed
P76 Common stock value: Zero growth Kelsey Drums Inc. is a well-established sup- plier of fine percussion instruments to orchestras all over the United States. The company's class A common stock has paid a dividend of $2.80 per share per year for the last 12 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 200 shares of Kelsey class A common stock 10 years ago at a time when the required return for the stock was 7.6%. She wants to sell her shares today. The current required rate of return for the stock is 9.25%. How much capital gain or loss will Kim have on her shares

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