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

To: bofp who wrote (62740)	1/21/2003 5:25:19 PM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Hi bopf, the tax shield value is already accounted for in net income, and the APIC amount has nothing to do with free cash flows. So no adustment needed for either of those. Then the model I'm using discounts the cash back to present value, but divides by the projected terminal fully diluted o/s share # (30 years hence). That is actually a more conservative number than doing the division every year as you suggest. It's also more accurate, especially considering that Cisco gives no dividends, so all we can expect in terms of profiting from owning Cisco's shares is share price appreciation. I agree with your last paragraph, though. I think you said the same thing I did wrt o/s shares, but in another way.