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Peter owns 25,000 shares of X Corporation stock. The company paid a 10% stock dividend. Before the dividend, Peter owned 10% of the outstanding stock, which had a market value of $250,000 or $10 per share. What is the value of the shares held by Peter after the payment of the 10% stock dividend assuming X tax rate is 40%?
a. $275,000
b. $265,000
c. $250,000
d. $225,000
With the solution!
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