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

To: hueyone who wrote (62753)	1/24/2003 4:37:53 AM
From: rkral	Read Replies (2) \| Respond to of 77400

OT .. Huey, re "if a company purchases Capex with stock options" What makes you think CSCO is purchasing capital equipment with stock options? If not CSCO, who? Ron

To: hueyone who wrote (62753)	1/24/2003 11:31:14 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Well, I didn't comment, because I'm not really clear on what you meant. I don't know of many companies that buy capex with stock options. For instance, when Cisco buys a company, they usually use outright stock to buy the company. And the company they purchase may include capex, but all of that is accounted for properly according to GAAP and purchase accounting rules. As far as impacts to my discounted free cash flows valuations, I usually take the line item from the investing section related to business acquisitions and either add back or subtract depending on what happened that year. I do the same with Capex spending, which can also be found in the investing section.