How do I figure average price on my stock sell after acquisition?


Question:
I had shares in a LVLT and bought shares in BWNG.Well, LVLT bought BWNG for stock and cash. I got more shares of LVLT and the rest went into my cash account. I just sold all my shares with LVLT...How do I figure share price of those extra shares and cash for taxes? Thanks.

Answer:
LVLT might have given you an exchange ratio say 1 share of LVLT for x shares of BWNG. Suppose if LVLT shares are priced at $40 and BVNG at $20, then if the exchange ratio is 1:2 meaning you get one share of LVLT for 2 shares of BVNG you own. This makes the price of BVNG at $20 you see. This way there is no dilution. You try to get the exchange ratio or how many shares of LVLT you got for all the shares of BVNG you got see how much your new LVLT shares costs divide it by the number of BVNG shares you forefeited you will know how much BVNG was priced for acquisition. The cash part is irrelevent since part of the value of BVNG was denominated in cash and got relinquished for ever without no return. This was pid to you in cash. Only the stock part can determine the value of your stock which should be figured out by the way I described earlier.
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