Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I just want to check that I have this correct since I was doing DRIP on FO for awhile and may sell FBHS per TMFJMo recommendations. My broker indicated that they converted my 52.369 shares of FO into 52.369 shares of FBHS (on 10/4) and 52 shares of BEAM (on 10/10). My plan is to use the opening prices of FBHS and BEAM on 10/4 as the basis for determining how to allocate the original cost basis across FBHS and BEAM. Yahoo had those as $12.19 and $43.53 respectively. So cost basis for FBHS would be 12.19/55.72 * FO_cost_basis and BEAM would be 43.53/55.72* FO_cost_basis. There may be a cash-in-lieu for the missing 0.369 shares of BEAM. For that event I would use the cost basis of:
(43.53/55.72* FO_cost_basis) * 0.369/52.369.

Is that correct or do I need to worry about the period between 10/4-10/7 and price differences between those dates?

Print the post Back To Top
No. of Recommendations: 0
can you explain what each of your figures are in the formula you have for your cost basis? I bought FO in March 2009 and I am trying to figure out how my cost basis translates to the new shares of BEAM and FBHS that I now own. Any help would be appreciated. Thanks!
Print the post Back To Top
No. of Recommendations: 1
I have a similar problem. Looking at your 43.52/55.72 I believe the numerator must be the open price of BEAM on the 1st day of trading (Oct 3) and the denominator must be the closing price of BEAM on the last day of trading (Oct 3)

Well the above was just thinking out loud as it seems that the value of the two stocks spun off taken together must be the value of FO and a ratio calculated to determine the value of the two new companies.

Surely this is not a new problem or a hard problem but for those of us that are not "in the know" we really have no answer.

My shares are held at Fidelity but I never talk to someone there. My adviser is TMF

I hope someone "in the know" posts to this thread.
Print the post Back To Top