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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 $6 per share per year for the last 19 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 200 shares of Kelsey class A common 7 years ago at a time when the required rate of return for the stock was 15?%. She wants to sell her shares today. The current required rate of return for the stock is 19%.

a. The value of the stock when Sally purchased it was $_____ per share

b. The value of the stock if Sally sells her shares today is $____ per share.

c. The total capital gain (or loss) Sally will have on her shares is $______. (Round to the nearest dollar. Enter a positive number for capital gain and a negative number for a loss).

Financial Management, Finance

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