Adjustment for Stock Dividend

Adjustment for Stock Dividend: This adjustement occurs in case of stock dividend. Processes are as below: 1)Find the closing price: We know that no transiction occures on the record date. So, first of all, identify the closing price on day before rec...ord date. As for example, record date of Xcompany was 10th April and the last price on 9th April was 1200tk. So, you have consider the 1200tk in this case. 2)Calculate price of 100 shares: As stock dividend/right share is declared as percentage(%),...

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Adjustment for Cash Dividend

1)Calulate cash amount: In case of cash dividend, you have identify how much cash you are going to get after record date. If face value of a share is 200 taka, then the price of 100 no. of shares is 100(shares)X 200(taka)= 20,000 taka. In case of 20% cash dividend, you will get 20,000tkX20%= 4,000tk for each 100 shares. 2)Calculate market price of 100 shares: If the price of each share was 1200tk on day-before-record date, then the current market price is 1200(tk)X 100(shares) = 1,20,000tk for...

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