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

Reference no: EM13255624

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?

Reference no: EM13255624

Questions Cloud

What problems can result for an organization : What problems can result for an organization and its customers when the organization acts in an ethically questionable manner?

How would the alleged manipulation lead to losses : How would the alleged manipulation lead to losses for Fannie Mae? Why wouldn't any losses on swaps be offset by gains on the mortgages Fannie Mae was hedging?

Explain some vitamins are water soluble and some vitamins : Some vitamins are water soluble and some vitamins are fat soluble. Identify whether vitamin C and vitamin E are water soluble of fat soluble.

What is the index of refraction of the syrup solution : A laser beam is incident at an angle of 30.8° to the vertical onto a solution of corn syrup in water. If the beam is refracted to 19.18° to the vertical, what is the index of refraction of the syrup solution

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?

Explain what is the approximate mass percent of cholesterol : What is the approximate mass percent of cholesterol in a blood sample having a cholesterol level of 176? Why can you not give a more precise answer

What can be done to prevent school violence : What causes violence in high schools, is there a developing trend in frequency or type of school violence and how should violent school children be punished and what can be done to prevent school violence?

What estimate can he make of the real rate of return : That annualized rate now stands at 3%. On the basis of the information that Carl has collected, what estimate can he make of the real rate of return?

A distilled water and measuring it with a spectrofluorometer : When filling a cuvette with distilled water and measuring it with a spectrofluorometer, upon excitation at 350nm, a band around 397nm appears. This is either a fluorescence band or a Raman band. Suggest what you can do experimentally to identify w..

User Account

All Pages