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

To: rkral who wrote (62832)	1/31/2003 8:42:46 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Oh, I'm sorry rkral. I thought you were talking about the effects of expensing stock options. As far as stock grants, I haven't looked into the rules for it, but I would guess that stock grants are treated as compensation expense and reduce net income as well. If that is the case, then all of my previous assertions would be true as well. Think about it this way. We know for sure that cash compensation is reported as salary expense and deducted from the income statement, which affects operating cash flows, cash, net income, and retained earnings. So if any other for of compensation was used in lieu of cash, and it was reported as compensation expense, then the same effects would occur, especially if they used cash to offset the dilution.