Kelsey Drums, Inc., is a well-established supplier of fine p

Assignment Help Finance Kelsey Drums, Inc., is a well-established supplier of fine p

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Kelsey Drums, Inc., is a well-established supplier of fine p

Kelsey Drums, Inc., is a well-established supplier of fine percussion instruments to orchestras all… Show more 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 $5.00 per share per year for the last 15 years. Management expects to continue to pay at that amount for the foreseeable 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? • Show less

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