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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.22+0.1%3:59 PM EST

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To: Elroy who wrote (61706)10/8/2002 5:41:05 PM
From: Stock Farmer  Read Replies (2) of 77400
 
Uhmmmm, revenues minus cogs minus expenses plus interest income minus taxes. No? Something I'm missing?

Yup, you are missing something.

Start with two facts: (a) the company has 28 someodd Billion in assets net of liabilities, and (b) when you add up total "profits" [your equation] (over the life of the company) it comes to less than 8 Billion.

What are you missing? Answer the questions: if the company only generated 8 Billion, where did the other 20 come from? Was there any more where that came from too? If so how much? What does this mean?

Hint: any difference would of course represent the degree that these "profits" were subsidized by something or someone else.

Warning: incorrect answers may be deducted from your net wealth.

John
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