Thursday, January 5, 2012

You just got a dividend of 30 shares of preferred stock on your XYZ common stock. You had purchased 200 shares?

You just got a dividend of 30 shares of preferred stock on your XYZ common stock. You had purchased 200 shares of XYZ stock for $12,000. On the date of dividend, the market value of the common stock was $75 per share and the market value for the preferred was $100 per share. What is the new per share cost basis of the XYZ common stock?

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