Common stock value---Zero growthPersonal Finance ProblemKelsey Drums, Inc., is a well-established supplier of fine percussion...
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Common stock value---Zero 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
$10per share per year for the last 18years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 100shares of Kelsey class A common 10years ago at a time when the required rate of return for the stock was
13%. She wants to sell her shares today. The current required rate of return for the stock is 16%.
How much total capital gain or loss will Sally have on her shares?The value of the stock when Sally purchased it was
$_______per share.(Round to the nearest cent.)
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