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To: L. Adam Latham who wrote (124302)1/5/2001 2:16:57 PM
From: maui_dude  Read Replies (2) | Respond to of 186894
 
Adam, Re : "How are you coming up with this?"

Here's how my numbers add up :

Since Both R&D and 'Cost of Sales' show up under 'Operating cost and expenses', A reduction by $2.5B will reduce the 'Operating cost and expenses' by $2.5B. Which, in turn,
increases the 'operating Income' by that amount.

Take 32% tax out. This will leave you with an increase in net income of ~$1.7B (= 2.5 * (1-0.32)).

1.7B/7 billion outstanding shares = 25c.

Does that sound right ? Please feel free correct me if I am doing something wrong here.

Maui.