What is the tax consequence relative to a fractional share?
Cash payments received by Macromedia stockholders in lieu of fractional shares will be treated as if such fractional shares of Adobe common stock were issued in the acquisition and then sold. A Macromedia stockholder who receives such cash will recognize gain or loss equal to the difference, if any, between such stockholder’s basis in the fractional share and the amount of cash received. Such gain or loss will be a capital gain or loss, and any such capital gain will be a long-term capital gain if the Macromedia common stock is held by such stockholder for more than one year. Tax matters are very complicated, and the tax consequences of the acquisition to a particular stockholder will depend in part on such stockholder’s circumstances. Accordingly, you should consult your own tax adviser for a full understanding of the tax consequences of the acquisition to you, including the applicability and effect of federal, state, local, and foreign income and other tax laws.