Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

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.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.96

0.0%

10:17 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lizzie Tudor who wrote (65460)	5/13/2004 1:50:11 PM
From: RetiredNow	Read Replies (1) of 77400

Hi Lizzie, you are saying two contradictory things: "I think options are not a cash expense" "Earnings should be roughly equal to cash flow" When options are exercised, companies receive a cash inflow from payments made to them equal to the number of options times the strike price. So if you want earnings to equal cash flows, then to start off with, you should have a contra-expense equal to that payment. But oops, that doesn't seem right. So maybe we better offset that contra-payment with an expense equal to the amount the options were worth, but oops that isn't right either. LOL. This isn't all as easy as it seems. :)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next