Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. common stock valuezero growthpersonal finance prob

Common stock valueZero growthPersonal Finance ProblemKelsey Drums, Inc., is a well-established supplier of fine percussion...

60.1K

Verified Solution

Question

Finance

Common stock

valueZero

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

$3.14

per share per year for the last

17

years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased

500

shares of Kelsey class A common

8

years ago at a time when the required rate of return for the stock was

8.6%.

She wants to sell her shares today. The current required rate of return for the stock is

4.60%.

How much total capital gain or loss will Kim have on her shares?

The value of the stock when Kim purchased it was

$36.5136.51

per share.(Round to the nearest cent.)The value of the stock if Kim sells her shares today is

$36.5136.51

per share.(Round to the nearest cent.)The total capital gain (or loss) Kim will have on her shares is

$00.

(Round to the nearest dollar. Enter a positive number for a capital gain and a negative number for a loss.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

What is the percentage price change for a zero coupon bond if its YTM changes from...

Physics
1.2K views

What is a 3 way switch? Why do they come in pairs? How does it work?

Advance Math
1.2K views

Question 1. Go to random.org. This website is a random number generator. Use it to generate...

Physics
1.2K views

The electric potential at a region varies with position as V x y z x...

Physics
1.2K views

Aliquid enter at point A1 with speed 3 5 m s and leaves at point...

Physics
1.2K views

3 twice the original value Mark the correct statement In photo electric effect electrons are...

Basic Math
1.2K views

Find the optimum strategies for player A and player B in the following game Find...

Calculus
1.2K views

What is f x if f x 40x p

Accounting
1.2K views

A company had credit sales of $31,000 and cash sales of $23,000 during the month...

Accounting
1.2K views

Ernest Sevigny, the administrator of Cook Community Hospital, has become interested in obtaining more accurate...

Accounting
1.2K views

Instructions: Prepare a classified balance sheet for December 20XX. Remember to calculate the final Retained...

Finance
1.2K views

A stock is expected to pay its first $100 dividend in 1 year from now....