You're pretty much 100% correct. If you had 10 shares pre ex div, you will have $8 cash and 11 shares (approximately since we don't know the strike price yet). The $8 and the 1 share are taxable (if you own them in a taxable account). Of the 16.76 in Nov BV, around $.57 is accrued dividend. So 24.3MM shares X 16.19 = $393.4 in BV. Best case since 11/30 BV is down 2%, worst case 5% that gives a post ex div BV/share of 13.99 to 14.42 on the new outstanding of 26.73MM shares. If you take the midpoint, the 11 shares plius $8 cash is worth $164.20 and at $17 you can sell your 10 shares for $170. Not that it can't, but I can't see why WMC would trade above 17 (except of course for a squeeze). However 3MM shares traded today and roughly 2.4MM will be created by the div (although I suppose if you were short 10 shares and stay short past the ex div date, you will be short 11 shares). It will all be interesting and some nice smoke and mirrors thrown in by the stock div, but on a pure economic basis, you sell at $17 or better and buy at just below $14 expecting a $.65 to $.70/share div going forward which is a 18.6% to 20% yield. Maybe enough to get you a flat to book trading price.
So some good came of it OMG! If and when it sells off to 13$ and the new dividend is .70 then I guess it will
be a wash and the company will still be in business. I count that a plus for the long term dividend collecting