SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Austrian Economics, a lens on everyday reality
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wildstar who wrote (160)1/29/2003 6:45:49 AM
From: Don Lloyd  Read Replies (1) of 445
 
Wildstar,

It seems to me based on your example that expensing stock and option grants is a "double counting" of sorts - both the numerator and denominator in "earnings/share" are affected. Not only is this unnecessary, but it seems also to result in a plain old lie.

I don't see any double counting in the denominator. If you see anything other than a simple double counting of expenses, please let me know.

Are you referring to the value of a counterfeit notes versus Federal Reserve notes in the eyes of the management versus the laborers?

No, more between an actual revenue received and an actual cost expended.

In the example, there are three possible numbers that have something to with valuing a counterfeit note.

Any one who buys a note, or receives one in wages, is able to exchange it for $100 in goods and services.

The company has decided that it is best served by selling notes in volume at $50. Clearly, no one would buy any at $100, as there is no advantage in doing so. The price would normally be set at such a point that a further reduction in unit price would not produce enough additional unit demand to offset the loss in revenue associated with the reduction
in unit price.

The third value is the actual cost to the company of $4.

If one or more notes were destroyed in a fire, an insurance company would, I believe, reimburse on the basis of the $4 replacement cost, unless specific contract terms specified otherwise at a different premium level.

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News