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 ​$4.11 per share per year for the last 19 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 100 shares of Kelsey class A common 8 years ago at a time when the required rate of return for the stock was 7.6​%. She wants to sell her shares today. The current required rate of return for the stock is 2.60​%. How much total capital gain or loss will Kim have on her​ shares?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  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 ​$4.11 per share per year for the last 19 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 100 shares of Kelsey class A common 8 years ago at a time when the required rate of return for the stock was 7.6​%.

She wants to sell her shares today. The current required rate of return for the stock is 2.60​%. How much total capital gain or loss will Kim have on her​ shares?

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