Question: Common stock value: Zero growth Kelsey 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 $5.00 per share per year for the last 15 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 100 shares of Kelsey class \(\mathrm{A}\) common 10 years ago at a time when the required rate of return for the stock was \(16 \%\). She wants to sell her shares today. The current required rate of return for the stock is \(12 \%\). How much capital gain or loss will Sally have on her shares?

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document