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Using an excel formula please assist with the following... (Is there a way to use the zero growth model in excel?)

Common stock value—Zero growth, Personal Finance Problem. 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 16 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 100 shares of Kelsey class A common 6 years ago at a time when the required rate of return for the stock was 12%.

She wants to sell her shares today. The current required rate of return for the stock is 9%. 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.)

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

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

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92406173

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