Replies to post #4198 on A.I.M. Users Bulletin Board (AIMUSERS)

[Bernie Goldberg]

Here's another way to figure it.
Let's suppose you bought AC at $26 and held it for two years.
You paid $2,600 for 100 shares which represents money out of pocket.
We will assume that AC does not increase or decrease the dividend for the two year period, and you receive $472 in dividends from Alliance Capital.
Would it not be reasonable to reduce your cost basis to $2,128 for your purchase of AC?
Or we could buy a $20,000 car which is offering a $3,000 rebate. Wouldn't we say that we spent $17,000 for the car?
Bernie