Well-established supplier of fine percussion instruments

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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 er share per year for the last 18 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 400 shares of Kelsey class A common 7 years ago at a time when the required rate of return for the stock was 14?%. She wants to sell her shares today. The current required rate of return for the stock is 17?%. How much total capital gain or loss will Sally have on her? shares?

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

Reference no: EM131523295

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