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Stock splits Personal Finance Problem Nathan Dotrolt owns 300 shares of tho drink company Monster Beverage Corp. which he purchased for $118 per share. Nathan

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Stock splits Personal Finance Problem Nathan Dotrolt owns 300 shares of tho drink company Monster Beverage Corp. which he purchased for \$118 per share. Nathan road in tho Wall Street Journal that the company's board of 6rectors had voted to split the stock 3-for-1. Just before the stock split, Monster Beverage shares were trading for \$130.96. Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 27\% federal inoome tax bracket. a. How many shares of Monster Beverage wil Nathan own atter the stock spit? b. Immediately after the split, what do you expect the value of Monster Beverage to be? e. Compare the total value of Nathar's slock holdings before and after the sple. What do you find? d. Does Nathan experience a gain or loss on the stock as a result of the 3for1 split? e. What is Nathan's tax lablity from the event? a. The number of shares of Monster Beverage Nathaa will own affer the 3.for-1 spit is shares. (Round to the nearest whole number) b. The value of Monster Beverage immediately afer the 3-for-1 split is : per share. (Round to the nearest cent) c. The cument value of Natharis stock holdings bofore the split is (Round to the nearest dolar) The total value of Nathan's slock holdings affer the a 3 ffor-1 spla is 4 (Round to the nearest dollar.) A stock spit wit (the lotai value of Nathar's stock holdings. (Select trom the drop-down menu.). d. Nathan experiences on the stock as a resull of the 3 for-1 sple. (Select tom the drop-down menu).) -. What is Nahan's tax labilty from the event? (Select the best answer below) A. $39,265 B. $0 C. 510,605.95 D. $1,049.76

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