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Technology Stocks : Ascend Communications (ASND)
ASND 216.57+5.9%3:59 PM EST

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To: Jeff Jordan who wrote (31890)1/23/1998 4:39:00 PM
From: Greg h2o  Read Replies (1) of 61433
 
RE:<The way I understand it...the new diluted earnings do subtract for stock options and such... so you were right! .25333 eps>
Not really totally correct. Don't you think when options are actually exercised that outstanding shares are diluted? The piper has to be paid at some point. Either the options have to be counted or carried as a liability. It is my understanding (I may need to revisit it) that in years after 1997, ALL options will have to be shown in EPS computations.
There's no such thing as a free lunch.
greg
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