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How do I calculate the per share cost basis of a stock?

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?

Public Comments

1. Your cost befor dividend is 60/share of USD12,000. Assuming that you sold all pref shares on date of dividend, the value of each common share comes down by (30*75)/200 i.e 11.25. So the new cost basis for common stock is USD 48.75