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 $3.18 per share per year for the last 15 years. Management expects to continue to pay at that amount for the foreseeable future. Kim Arnold purchased 100 shares of Kelsey class A common 7 years ago at a time when the required rate of return for the stock was 8.6%. She wants to sell her shares today. The current required rate of return for the stock is 11.60%. How
muchtotal capital gain or loss will Kim have on her shares?
The value of the stock when Kim purchased it was $____ per share. (round to the nearest cent.)
The value of the stock if Kim sells her shares today is $____ per share. (round to the nearest cent.)
The total capital gain (or loss) Kim 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.)