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Just before the stock split, Monster Beverage shares were trading for $133.88. Answer the following questions about the impact of the stock split on his
Just before the stock split, Monster Beverage shares were trading for $133.88. Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 26% federal income tax bracket. a. How many shares of Monster Beverage will Nathan own after the stock split? b. Immediately after the split, what do you expect the value of Monster Beverage to be? c. Compare the total value of Nathan's stock holdings before and after the split. What do you find? d. Does Nathan experience a gain or loss on the stock as a result of the 4-for-1 split? What is Nathan's tax liability from the event
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