Is the method of adjusted close calculation correct at Yahoo? Example: Adjusted Close Calculations http://help.yahoo.com/l/us/yahoo/finance/quotes/quote-12.html 2/13/03 Close = 46.99 2/14/03 Close = 48.30 2/18/03 Split = 2:1 2/18/03 Close = 24.96 2/19/03 Cash Dividend = 0.08 (ex-date) 2/19/03 Close = 24.53 Split Multiplier = 0.5 Dividend Multiplier = 1 âËâ (0.08/24.96) = 0.9968 2/13/03 Adj. Close = 0.5 * 0.9968 * 46.99 = 23.42 2/14/03 Adj. Close = 0.5 * 0.9968 * 48.30 = 24.07 2/18/03 Adj. Close = 0.9968 * 24.96 = 24.88 2/19/03 Adj. Close = 24.53 But 24.53 / 24.88 - 1 = -0.014067 is not equal to (24.53 + 0.08) / 24.96 - 1 = -0.014022 Why do they use wrong method? I think the pre-dividend data need to be multiplied by 1 / (1 + 0.08 / 24.53 ) in case of dividend distribution.