How much capital gain or loss will sally have on her shares

Assignment Help Finance Basics
Reference no: EM13287615

Kelsey Drums, Inc., is a well- established supplier of fine percussion instruments to orchestras all over the United States. The company 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 foresee-able future. Sally Talbot purchased 100 shares of Kelsey class 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?

Reference no: EM13287615

Questions Cloud

Determine the probabilies for the various values of x : Let X be the maximum of the number of heads obtained when carlos and joe each flip a fair coin twice. Show the mapping from S to Sx, the range of X find the probabilies for the various values of X
Calculate the power dissipated in the resistor : a 4-omega and 6-omega resistor are connected in series to a battery with V=12V. Calculate the power dissipated in the 6-omega resistor
Calculate johnson debt ratio : Calculate Johnson's debt ratio assuming the firm uses only debt and common equity. Round your answer to two decimal places.
What was the particles initial velocity : A particle has an acceleration of 6.19 m/s^2 for 0.350 s. What was the particle's initial velocity
How much capital gain or loss will sally have on her shares : The current required rate of return for the stock is 12%. How much capital gain or loss will Sally have on her shares?
Discuss the relationship among the various returns : Discuss the relationship among the various returns that you find for each of these stocks.
Obtain a set of equations relating to symmetrical components : A three phase star connected load is connected across a three phase balanced supply system. Obtain a set of equations relating to symmetrical components of theline and phase voltages.
What is the magnitude of the tension in the rope : A block of weight 43.6 N is hanging from a rope. The tension from the rope is pulling upward on the block. What is the magnitude of the tension in the rope
Find the magnitude and direction of acceleration of block : A block of weight 36.1 N is hanging from a rope. The tension in the rope is 48.5 N, pulling upward on the block. find the magnitude and direction of the acceleration of the block

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute stock price per share

After using the corporate valuation model, the value of a company's operations is found to be $400 million. The balance sheet shows $20 million in short-term investments that are not related to operations.

  Determine the price of a cup

A coffee shop has a cost of $0.80 per cup of gourmet coffee. They use a mark-up of 200 percent. Determine the price will they charge for a cup of gourmet coffee?

  Computation of earnings per share

Pulp Paper Corporation and Holt Paper Corporation are able to generate earnings before interest and taxes of $150,000.

  Describe capital structure

Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Describe capital structure.

  Determine the value of the market change

Assume that in 2006 the expected dividends of the stocks in a broad market index equaled $210 million when the discount rate was 9.5 percent and the expected growth rate of the dividends equaled 6.5%.

  Determine the impact on profits of accepting the order

Gamboa's Corporation has a capacity of 50,000 units per year and is currently selling all 50,000 for $500 each. Keller Corporation has approached Gamboa about buying 5,000 units for only $450 each.

  Describe theory on discounted cash flows method

Describe theory on discounted cash flows method in Capital Budgeting but assets cannot be valued soundly if we do not have well-functioning capital markets

  Which of the various valuation techniques

What is your assessment of the stipulation placed on the acquisition by the Australian government? 3 Which of the various valuation techniques do you find the most and least useful? 4 Do you think the offer is a good one? Should Quillan take it?

  Find the npv

Machine used has a 3 year tax life, depreciated by the straight line method over the 3 year life and would have zero salvage value, no new capital required.

  Gsa acquisition and procurement program summary

Go to this GSA website and pick one of the GSA acquisition or procurement programs that interests you most and summarize it.

  What does the beta of the second stock have to be

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.92. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.76?

  Calculate the dividend yield

Suppose you expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of next three years. You believe the stock will sell for $20 at the end of third year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd