3Com /Palm Spinoff
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Posted by Brendan Collins on July 28, 2000 at 22:08:03:
3Com just spun off Palm Computing. The ratio was 1.4832 shares of PALM for each 3COM with cash for partial PALM shares remaining.
How do I show the transaction, ensuring that my cost basis is correct for each? The cost basis adjustment for COMS is 21.02%, 78.98% for PALM. COMS was trading at ~$65 and is now ~$13. No adjustment in PALM. When I tried to adjust the original price paid to account for the cost/value, the problem that results is a graphical misrepresentation with the share prices as pre-spin-off.(COMS "dropped" from 65 to 13 in a day)
Any ideas on this one??? I searched for the topic on your board with no luck.
Thanks - Brendan Collins