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Stock splits Personal Finance Problem Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp., which he purchased for $122 per share. Nathan
Stock splits Personal Finance Problem Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp., which he purchased for $122 per share. Nathan read in the Wall Street Journal that the company's board of directors had voted to split the stock 3-for-1. Just before the stock split, Monster Beverage shares were trading for $132.59. Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 24% federal income tax bracket. a. The number of shares of Monster Beverage Nathan will own after the 3-for-1 split is shares. (Round to the nearest whole number.) b. The value of Monster Beverage immediately after the 3-for-1 split is $ per share. (Round to the nearest cent.) c. The current value of Nathan's stock holdings before the split is $ (Round to the nearest dollar.) The total value of Nathan's stock holdings after the a 3-for-1 split is $ (Round to the nearest dollar.) A stock split will the total value of Nathan's stock holdings. (Select from the drop-down menu.) d. Nathan experiences on the stock as a result of the 3-for-1 split. (Select from the drop-down menu.) e. What is Nathan's tax liability from the event? (Select the best answer below.) A. $0 B. $12,729.60 C. $1,016.64 D. $53,040
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