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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (59761)6/9/2002 11:35:50 PM
From: rkral  Read Replies (1) | Respond to of 77400
 
CORRECTION .. How did you come up with the 37% tax rate?
It's easy when I screw up! I was looking at CSCO & SEBL threads at the same time .. and mistakenly put SEBL's effective tax rate into the CSCO post. Sorry!
Ron



To: hueyone who wrote (59761)6/10/2002 7:49:51 AM
From: RetiredNow  Read Replies (1) | Respond to of 77400
 
Hi Hueyone, I would bet that the tax benefits are calculated from the exercise price minus the grant price. I know for sure that the tax benefits are realized only after the employee exercises (or sells) the option. So at that point, the company no longer has to estimate anything, because they know the real value the employee received and can record that as a deduction from earnings.


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