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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.95+0.2%Dec 5 9:30 AM EST
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To: rkral who wrote (63037)2/10/2003 10:42:10 AM
From: Stock Farmer  Read Replies (2) of 77400
 
Interesting. Someone was on this thread suggesting that Black Scholes overstates the cost of stock options.

Yet you use 5.67 B$ as the total after-tax cost to the company as disclosed under SFAS 123 footnotes.

I haven't done the addition myself - could you post the raw data and maybe tabulate the sum for us? Particularly in light of this:


Year    Tax Benefit from 
        Employee Stock Options
 
1996                   198
1997                   274
1998                   422
1999                   837
2000                 3,077
2001                 1,755
2002                    61

Total                6,624     <---  Tax deduction claimed

Tax rate               35%

Pre-Tax Benefit     18,925     <---  Expense giving rise to deduction
Minus Tax Benefit   (6,624)
==========================
After-Tax Benefit   12,301     <---  After-tax non-cash compensation cost



John
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