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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: Jim Patterson who wrote (55529)8/1/1998 1:21:00 PM
From: Marie Smith  Read Replies (2) of 176387
 
Jim Patterson -- Dell's debt

Interest on Dell's debt is a tax deduction, so the real cost of borrowing is less.

Also, you state that Dell may reissue the stock it had bought back and take a loss. Actually, whenever a corporation buys and sells it s own stocks, any "gains" or "losses" occurring are not put on the Income Statement and neither are they deductions on the tax return. So called "gains" and "losses" are taken care of by adjusting stockholders' equity so it is handled entirely on the balance sheet. A company is simply forbidden for making gains and losses on transactions involving its own stock. You can see why. Think about the manipulation that would occur if this was not the case.

Marie
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