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


To: BWAC who wrote (60681)8/6/2002 7:27:23 AM
From: rkral  Respond to of 77400
 
OT ... They use Fully Diluted Shares when calculating EPS. Which includes in the money exercisable options not yet converted to shares.

Since December 31, 1995, "diluted EPS" has been calculated using the Treasury Stock Method of FAS 128. The adjective "fully" has been dropped in financial reports. Whether this is "fully" diluted EPS is arguable, because additional dilution shares are calculated assuming some shares are purchased with proceeds from the exercise price paid by the employee, and the tax benefit from option exercise.
Message 17820292

Diluted EPS includes the effect of both exercisable (vested) and un-exercisable (non-vested) options.
Message 17804527

Ron