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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.04-0.3%Nov 26 3:59 PM EST

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To: bofp who wrote (62740)1/21/2003 5:25:19 PM
From: RetiredNow  Read Replies (2) of 77400
 
Hi bopf,

the tax shield value is already accounted for in net income, and the APIC amount has nothing to do with free cash flows. So no adustment needed for either of those. Then the model I'm using discounts the cash back to present value, but divides by the projected terminal fully diluted o/s share # (30 years hence). That is actually a more conservative number than doing the division every year as you suggest. It's also more accurate, especially considering that Cisco gives no dividends, so all we can expect in terms of profiting from owning Cisco's shares is share price appreciation.

I agree with your last paragraph, though. I think you said the same thing I did wrt o/s shares, but in another way.
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