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


To: Bilow who wrote (83013)8/16/2000 3:33:09 AM
From: Mama Bear  Read Replies (1) | Respond to of 132070
 
"I had assumed that all the costs in the business would scale with inflation. "

My bad, you are correct.

"if I sold 1/2 of the hot dog stand today and there was the subsequent scenario you describe"

Should have read "if I had sold options on 1/2 of..."

You make some good points, but I disagree that what Nathan does subsequently to being granted the option is relevant to this discussion. I think we can agree that it's all in the administration of them whether they are a positive or a negative. But there is risk that the unmotivated pimply faced kid will take the working capital and bet it on the roulette table as well.

"but he has brought no expected earnings to the business as a whole."

You seem to be forgetting that Nathan is a hot dog super genius, unlike myself or the pimply faced kid. The reason for granting him the option is because I think the risk/reward is favorable to my ending up with a half share of a significantly larger pie.
Regards,

Barb