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Please explain and answer all questions. They're more parts to this after the second question. Thanks. Common stock value - Zero growth Personal Finance Problem
Please explain and answer all questions. They're more parts to this after the second question. Thanks.
Common stock value - Zero growth Personal Finance Problem Kelsey Drums, Inc., is a well-established suppiler ol fine percussion instruments to orchestras all over the United States. The company's class A common stock has paid a dividend of $3.03 per share per year for the last 20 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 400 shares of Kelsey class A common 10 years ago at a time when the required rate of return for the stock was 7.8%. She wants to sell her shares today. The current required rate of return for the stock is 4.80%. 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. (Round to the nearest cent.) The value of the stock if Kim sells her shares today is \$ per share. (Round to the nearest cent.)
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