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Technology Stocks : WDC/Sandisk Corporation
WDC 172.26-2.2%Dec 31 3:59 PM EST

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To: clix who wrote (28107)4/27/2005 8:33:42 PM
From: Pam  Read Replies (1) of 60323
 
Hi Clix,

Think of it this way- 240MM at 6%pa (this is my assumption, I forget what the actual rate is) is 14.4MM in interest expense per year. If it is deductible, the after tax cost is about 9MM which amounts to less than 5c a year in eps dilution, which amounts to a little over a penny per share dilution per Q! If the accounting treatment is different, one would be off slightly but nothing to lose sleep over.

-Pam
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