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Starkey Percussion, Inc., is a well-established supplier of fine percussion instruments to orchestras all over the United States. The companys class A common stock has

  1. Starkey Percussion, Inc., is a well-established supplier of fine percussion instruments to orchestras all over the United States. The companys class A common stock has paid a dividend of $7.25 per share per year for the last 12 years. Management expects to continue to pay at that amount for the foreseeable future. Paul Harrison purchased 1,000 shares of Starkey class A common 10 years ago at a time when the required rate of return for the stock was 13%. He wants to sell his share today. The current required rate of return for the stock is 11%. How much capital gain or loss will Paul have on his shares?

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