How does one calculate ex-dividend share price?
In order to expense employee bonus shares from 2008 , the formula is amended as follows : New Formula: (Applied from 2009) ((Closing share price of the previous day – Cash dividend per share) + (Subscription price per share * Subscription ratio) / (1 + Stock dividend distribution ratio + Subscription ratio) Notes : Stock dividend distribution ratio = Stock dividend (shares ) / Total outstanding shares Subscription ratio = New shares subscribed / Total outstanding shares Example: For example, MediaTek’s referenced opening share price for Jul. 28, 2010, the ex-dividend day, is calculated as below: 1. Closing share price on Jul. 27, 2010 is NT$ 483.00 2. Cash dividend per share is NT$ 25.9979 3. Stock dividend distribution ratio is 0.2%, based on 2,180,237 shares divided by total 1,090,205,884 outstanding shares 4. Subscription ratioļ¼N/A 5. Ex-dividend share price is (483.00-25.9979) / (1+0.002) = 456.08 The market picks the nearest price tick, 456.08, as the referenced ex-dividend price.
