An individual shareholder owns 3,000 shares of Baxter Corporation common stock with a basis of $10 per share. She receives a nontaxable 5% stock dividend. The basis per share of the common stock after the stock dividend isA.$9.00.B.$10.00.C.$9.52.D.$9.50.

C. $9.52

When a shareholder receives a nontaxable stock dividend, the basis of the original shares is adjusted to account for the additional shares received. The basis of each share after the stock dividend is calculated by allocating the total basis of the original shares over the sum of the original shares and the newly received shares.

The shareholder owns 3,000 shares before the stock dividend with a basis of $10 per share. The total basis is: 3,000 shares * $10/share = $30,000

The stock dividend is 5%, so the shareholder receives 5% of 3,000 shares as additional shares: 0.05 * 3,000 shares = 150 shares

Now, the shareholder has a total of: 3,000 original shares + 150 new shares = 3,150 shares

To find the new basis per share, you divide the total basis by the total number of shares: Total basis / Total number of shares = New basis per share $30,000 / 3,150 shares = $9.52 (approximately)

Therefore, the basis per share of the common stock after the stock dividend is $9.52.