Homework Answers
a. The number of shares of Monster Beverages that Nathan will
own after after the 5 for 1 stock split is [300 * 5/1] = 1500
shares
b. The value of Monster Beverages immediately after the 5 for 1
split is [130.07/5] = $26.014
c.The Total value of Nathan's stock holding before and after the
stock split will be same.
Value before stock split = 300 shares* $130.07 = $39021
Value after stock split = 1500 shares* $26.014 = $39021
d. Nathan is indifferent due to such stock split and does not gain
or lose in such stock split
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