SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Stock Farmer who wrote (62786)1/28/2003 7:17:53 AM
From: bofp  Read Replies (2) | Respond to of 77400
 
John,

Your accounting is a bit like the old brain teaser. Three men walk into a hotel and each ask for a room. The desk clerk informs them that rooms are $100 apiece and each gladly pays his money. Later, the manager informs the desk clerk that there is a special - three rooms for $250. Rather than do complicated arithmatic, the clerk decides to give each man $10, and keep $20 for himself.

Now, each man has paid $90 for a total of $270 and the desk clerk has kept $20, to make the total $290 - what happened to the other $10?

Think about it. Wealth is cash.

BofP



To: Stock Farmer who wrote (62786)1/28/2003 3:42:52 PM
From: rkral  Read Replies (1) | Respond to of 77400
 
John, I'm a few posts behind, so bear with me, please.

re "So just looking at the high level and forgetting about all the puts and takes in the middle, the company should show an increase in 34.9 Billion dollars in wealth: 27.4 Billion in return for what they gave out and 7.5 from running the business."

$27.4 billion? That's the value of those 2 billion added shares .. at today's price. Shouldn't those 2 billion shares be valued at the time of the non-cash purchases? If not, why not?

Ron