What is the value of the shares held

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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

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Reference no: EM13768207

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