Corporate Actions & Entitlements
Turn a book of client positions and four announced events into correct entitlements, adjusted positions and exception flags.
The scenario
You're on the asset-servicing desk. A batch of corporate-action events has been announced against a book of client positions: a cash dividend, a stock split, a bonus issue and a rights issue. The entitlements need computing and booking before the deadlines. Build the workbook that turns positions and events into correct entitlements and adjusted positions.
Where this shows up
Computing corporate-action entitlements against a position file is a routine asset-servicing task and a common operations take-home at firms of this type.
Firms such as BNY, State Street, Northern Trust.
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Task brief
# Corporate Actions & Entitlements **Role relevance:** Asset servicing / corporate actions take-home **Estimated time:** 45 minutes **Difficulty:** Intermediate **Format:** Excel (.xlsx) ## What you are given - corporate_actions_entitlements_starter.xlsx with four announced events and eleven client holdings - A Formula Help tab covering each event type and the exception test ## What you must deliver 1. Cash-dividend entitlement per holding, gross and net of withholding 2. Adjusted share counts for the split and the bonus issue, with cash in lieu of fractions 3. Rights subscription entitlement and its cost 4. Exception flags for any missing, zero or negative position ## Constraints & assumptions Fractional entitlements always round DOWN, with cash in lieu at the stated price. A blank position is unknown, not zero. Flagged rows must contribute nothing to the totals. ## Submission note Complete the starter file, then compare your work against the mark scheme.
Your tasks
- 01Compute the cash-dividend entitlement per holding, gross and net of a stated withholding rate.
- 02Apply the stock split and the bonus issue to produce adjusted share counts, rounding fractional entitlements down with cash in lieu.
- 03Compute the rights-issue subscription entitlement and its cost at the subscription price.
- 04Flag any holding whose position is missing or inconsistent so it is never processed on stale data.
How you're assessed
The full points-based mark scheme is included with the pack.
What you'll learn
- How each corporate-action type turns a holding into an entitlement.
- Why ex-date and record-date logic decides who is entitled.
- How fractional entitlements are handled in practice: round down, cash in lieu.