Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 126.01

+1.3%

Feb 10 3:59 PM EST

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To: GVTucker who wrote (137097)	7/20/1999 12:14:00 PM
From: Chuzzlewit	of 176388

I disagree. Since European style options can only be exercised at the expiration of the option they allow much more certain cash management. The sale of put options finances the stock repurchase program. In any event, the cash received from the sale of these options is not included in the income statement. I believe that these instruments may be considered detachable put warrants, and according to Wiley GAAP 99: A detachable put warrant can either be put back to the debt issuer for cash or can be exercised to acquire common stock ... these instruments should be accounted for in the same manner as mandatory redeemable preferred stock. The proceeds applicable to the put warrant ordinarily are to be classified in equity ... In the case of a put warrant with a price substantially higher than the value assigned to the warrant at issuance, however, the proceeds should be classified as a liability since it is likely that the warrant will be put back to the company TTFN, CTC

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