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To: Petz who wrote (20845)11/28/2000 1:26:48 PM
From: GoutamRead Replies (2) | Respond to of 275872
 
Petz, & other:

re: <You will note that with the tax hurdle and Q1/Q2 slowdown, Q4'2000 EPS will probably not be exceeded until Q4'2001. The tax rate going from an effective rate of 16% in Y2000 to 31% in Y2001 makes a BIG difference -- more than 15% if you do the math. >

What is the max tax rate on the operational income? Also, what is the max tax rate for the corporations on their investment gains? I've been trying to analyze the tax rates on different types of income reported by intel over the last four quarters.

35% tax rate on the investment gains, and about 39.5% tax rate on the pure operational income seem to work with in 1% of error in reconciling the deferred taxes reported by Intel in their four previous quarters' earnings reports. TIA

goutama



To: Petz who wrote (20845)11/28/2000 3:51:56 PM
From: Michael OhlendorfRead Replies (1) | Respond to of 275872
 
If they promised an EPS in the high teens in 2001, then revenue growth has to be 10% Q to Q (40mio CPUs vs. 28mio CPUs also supports this)in order to achieve this because higher tax rate and higher depreciation will eat 20% up easily. Plus there will be a shelf offering with an unknown effect. That was my point.