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Technology Stocks : How high will Microsoft fly?
MSFT 486.50+0.3%Dec 23 3:59 PM EST

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To: jonkai who wrote (71126)7/15/2002 12:33:49 AM
From: David Howe  Read Replies (2) of 74651
 
Look at how it effects Coke's EPS. A whole penny. Gee, maybe MSFT's might be 2 pennies. Coke is starting with all NEW option grants, not existing ones. And, they are amortizing them over the 10 year vesting period.

I'll bet that if MSFT adopted this (ie. starting with the 4th quarter grant) their EPS for the quarter would drop by no more than 1 cent.

<< The beverage giant expects a financial impact of a penny per share this year against earnings, increasing to 3 cents in 2003 and ultimately to 9 cents per share, Mr. Fayard said.

There is no cash-flow effect from the change, so executives do not believe the change will harm Coke's stock price, he said. >>

IMO,
Dave
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