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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 176.67+1.6%Nov 12 3:59 PM EST

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To: Wyätt Gwyön who wrote (125844)12/4/2002 11:38:21 PM
From: slacker711  Read Replies (1) of 152472
 
the analogy i have mentioned several times (first mentioned by an accounting Nobel Laureate in the WSJ) is, if everything were "accounted for" just by EPS dilution, then a co could theoretically pay every single expense via options to all its payees (e.g., utilities, raw materials suppliers, landlords... heck, maybe even the IRS!), with the absurd result that the company would have zero cash costs and 100% margins!

If options have an obvious cost which can easily be accounted for....why wouldnt this situation work?

It seems that very ludicrousnous of the analogy suggests that the value of the options are nebulous.

Slacker
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