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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (20898)	11/29/2000 10:49:58 AM
From: that_crazy_doug	Respond to of 275872

<< QUIZ: A company using a 16% tax rate earns $1.00 per share after taxes in year 2000. >> According to the Q2 CC tax rate was 20% not 16%. Of course, I would assume the target tax rate is closer to 38 then 31 too, but I'm not really sure what tax rules for corporations are. << THE CORRECT ANSWER IS d)28% >> 28% earnings growth seems like a reasonable number to hit if we can maintain the 20% revenue growth the company is guiding for the year. A much larger portion of the revenues should head to profits as revenue increases. Of course, in Q1 it will be extremely difficult to hit this number, because we weren't being taxed at all. So, maybe the analysts weren't so dumb in targeting roughly similar 00 and 01 earnings for the year. ;)