How many shares of monster beverage will nathan own alter

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Reference no: EM133378858

Question: Stock splits Nathan Detroit owns 300 shares of Monster Beverage Corp., which he purchased for $120 per share. Nathan read that the company's board of directors voted to split the stock 5-for-1. Just before the split, Monster Beverage shares were trading for $128.63. Answer the following questions about the impact ofthe stock split on his holdings and taxes. Nathan is in the 24% federal income tax bracket.

a. How many shares of Monster Beverage will Nathan own alter the stock split?

b. After the split, what do you expect the price of Monster Beverage to be?

c. Compare the total of Nathan's holdings before and alter the split, given that the post-split stock price of Monster Beverage was $26.29. What do you ?nd?

d. Does Nathan experience a gain or loss on the stock as a result of the 5-for-1 split?

e. What is Nathan's tax liability from the event?

a. The number of shares of Monster Beverage Nathan will own after the 5-for-1 split is shares. (Round to the nearest whole number.)

Reference no: EM133378858

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