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Hi, Roy!

I have a question for you. Reuters is doing a huge cash-back thing with their shareholders of record 2/18. This payment will be considered (for holders of the ADS) to be dividend income from foreign sources.

Any idea how this affects the cost basis? Or any idea how I can figure it out?

The official line is: "American Depository Share (ADS) holders will receive 13 new ADSs plus the US dollar equivalent of £81.60 in cash in return for every 15 ADSs held."

If we make the math easy...for example, if one has 150 shares of RTRSY, with a cost basis of 50, one would end up with 130 shares of the new stock and 916 pounds sterling. Is there (maybe this is wishful thinking)somehow no accounting for a new cost basis?, or is the new cost basis the same as the original, or is the cost basis the price of the new shares once they are issued?


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