MCAN Mortgage Corp T.MKP

ACB treatment of the Special dividend

[kraftdinner]

Anyone know how the shares recieved from the special dividend will effect the average cost base?

[JayBanks]

It should lower yours as your share count will rise with no added costs. I have 1474 shares at a cost of $18,853.89 for an Average Cost Basis of about $12.79 I estimate to get either 76 or 74 shares (we will use 76 cause it's a cleaner number) 1474 + 76 = 1550 18,853.89 / 1550 = $12.16ish This is how the last special stock dividend appeared in my account: MCAN

[kraftdinner]

Thank you for the response.

[kraftdinner]

The corporate website indicates the special distribution to be interest for the T-slip of $0.97 per share distributed as shares using a 5-day weighted average price of $18.93 to determine the number of shares allocated. The shares did show up in my account with the calculated interest and no added commissions. It looks like the broker kept $9.14 left over after calcualting the number of whole

[JayBanks]

  You can slice your apple any way you like, as for me the shares were given to me at no cost to me, how they came doesn't matter to me in my cost basis other than I have more shares with no added capital deposited. I hold it in a TFSA so any ROC or interest calculations don't matter to myself thus I ignore it. Did you receive your Cash In Lieu yet? I got mine on Friday morning

[kraftdinner]

I don't believe I have recieved the Cash in Lieu portion. My brokerage website does not provide a running cash balance by transaction (like a cheque book) and the activity page shows a STKDIV of 102 shares for $1940.00. Having a lengthy period of experience to get to know this broker I believe they kept the $9.14 as I see similar discrepancies with over the counter trades in the US dollar

[kraftdinner]

Today I recieved $8.25, the activity page of the brokers websites designates the action as CIL. This is how I recorded the special dividend in case I am ever questioned about things,

[kraftdinner]

Today I recieved $8.25, the activity page of the brokers websites designates the action as CIL. This is how I recorded the special dividend in case I am ever questioned about things, Mcan Mortgage Corporation           Acquisitions