Value 7 years ago = Dividend / Required Return
= 11 / 0.15
= 73.33
value as of Today = Dividend / Required Return
= 11 / 0.19
= 57.89
Capital Loss = 73.33 - 57.89 = 15.44 per share
Total Loss = 15.44 * 400 shares = $6176
NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.
Sourceless, Inc is a successful distribution company. The company's class A common stock has paid a...
(Round to the nearest cent) Common stock value—Zero growth Personal Finance Problem 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 $4.06 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 200 shares of Kelsey class A common 10 years ago at a time...
P7-6 Personal Finance Problem Common stock value: Zero growth 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...
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 $11 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 15%. She...
Valuation of Stock 1) P. Noel Company's common stock has just paid a $2.00 dividend. If investors believe that the expected rate of return on P. Noel is 14% and that dividends will grow at the rate of 5% per year for the foreseeable future, what is the value of a share of P. Noel stock? A) $15.00 B) $22.22 C) $23.33 D) $40.00 2) Green Company's common stock is currently selling at $24.00 per share. The company recently paid...
3. ATP Industries paid a $0,50 dividend to its common shareholders 6 years ago. It just paid a dividendo common shareholders. If dividends continue to grow at this rate for the foreseeable future, and the shares are won S10.05, what is the investor's required return?
Common stock valuelong dashConstant growth McCracken Roofing, Inc., common stock paid a dividend of $1.48 per share last year. The company expects earnings and dividends to grow at a rate of 6% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of $28? b. If McCracken expects both earnings and dividends to grow at an annual rate of 12%, what required rate of return would result in...
Common stock value- constant grow. McCracken Roofing, Inc., common stock paid a dividend of $1.41 per share last year. The company expects earnings and dividends to grow at a rate of 8% per year for the foreseeable future. a. what required rate of return for this stock would result in a price per share of $24? b. If McCracken expects both earnings and dividends to grow at an annual rate of 11% what required rate of return would result in...
Please respond to both pictures asap. I will THUMBS UP within the hour. 25 26 Sources, Inc. is a succesul debution company. The company's class A common stock has paid a dividend of 57 per share per year for the last 18 years. Management expects to continue to pay at that amount for the foreseeable future Sam purchased 500 shares of the class A common years ago at a time when the required rate of return for the stock was...
McCracken Roofing, Inc., common stock paid a dividend of $1.29 per share last year. The company expects earnings and dividends to grow at a rate of 9% per year for the foreseeable future. a.What required rate of return for this stock would result in a price per share of $28? b. If McCracken expects both earnings and dividends to grow at an annual rate of 11%, what required rate of return would result in a price per share of $28?...
McCracken Roofing, Inc., common stock paid a dividend of $1.35 per share last year. The company expects earnings and dividends to grow at a rate of 5% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of $22 b. If McCracken expects both earnings and dividends to grow at an annual rate of 11%, what required rate of return would result in a price per share of...