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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (76455)	2/23/2000 5:57:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Wayne - [[...But we are not going to get anywhere if you are trying to convince me that a company earning GAAP $1.00 per share with a cash compensation plan is equal to another with GAAP $1.00 earnings per share that is giving away 2% of its total number of shares outstanding annually to keep its employees. There's no way in the world that all else being equal these two are the same. All else being equal, if they both grow net income 10%, one will be earning $1.10 next year and one will be earnings $1.08. (assuming exercise of 2%) That would be an ongoing process year after year....]] This is exactly what I want you to do, except don't calculate earnings per share to get the earnings growth. Instead calculate the absolute dollar earnings growth as 10% per year and offset it with the 2% dilution per year to get shareholder earnings growth as 1.10/1.02 % per year. Regards, Don