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To: Lizzie Tudor who wrote (145269)8/12/2002 7:48:29 PM
From: Oeconomicus  Read Replies (1) | Respond to of 164684
 
I put options expensing in the same category as goodwill, as far as how to value a company.

Well said. Do you think any of the vocal proponents, particularly those predicting (hoping for?) a valuation collapse as a result of expensing options, can guess how option expense would factor into a discounted cash flow model? How 'bout a "comparable deal" valuation? The recently popular "liquidation value"?



To: Lizzie Tudor who wrote (145269)8/12/2002 7:59:07 PM
From: GST  Read Replies (4) | Respond to of 164684
 
I believe that is known as "whistling past the graveyard". Options will be expensed and reported earnings will be much lower as a result. It is not like "goodwill" -- it is a real expense and not including it grossly distorts financial performance. This is a losing battle.