well, now you are getting into a philosophical discussion. You say options expense aren't a real expense. I say they are.
For instance, if I pay you, as an employee, a slice of my apple pie, that leaves less apple pie to divide up among the people that own the apple pie. To the owners of the apple pie, that slice they gave the employees looks, feels, and smells just like the rest of the apple pie.
In other words, that options expense, looks, feels, and smells like a cash expense. So to a shareholeder or investor, there is no substantive difference, which means that shareholders/investors look at GAAP EPS, despite the analysts/Street/corporations trying to fool everyone with Pro-Forma EPS. |
