P7-6: common stock value: zero growth kelsey drums inc. is a well-established sup- plier of fine percussion instruments to orchestras all over the united states. the company’s class a common stock has paid a dividend of $2.80 per share per year for the last 12 years. management expects to continue to pay at that amount for the foreseeable future. kim arnold purchased 200 shares of kelsey class a common stock 10 years ago at a time when the required return for the stock was 7.6%. she wants to sell her shares today. the current required rate of return for the stock is 9.25%. how much capital gain or loss will kim have on her shares?

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?

What is the correct percentage of texas teachers charged with ethics violations each year?

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?