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


To: Lizzie Tudor who wrote (65450)5/13/2004 11:11:10 AM
From: rkral  Read Replies (1) | Respond to of 77400
 
OT .. Lizzie, tell me EXACTLY why you think expensing at grant is not a valid accounting approach. And what the heck is a "volitility multiple?"

Try to keep your answer concise.

Ron



To: Lizzie Tudor who wrote (65450)5/13/2004 1:39:00 PM
From: RetiredNow  Read Replies (1) | Respond to of 77400
 
B.S. is actually a very good estimating model. It works great in periods of highly predictable growth. It just works poorly in years of great variation like 2001-2002. So if you have a model that works well 90% of the time, why would we really need something else? Anyway, there's an easy way to fix it. All we have to do is allow up and down true-ups based on market close of the stock price every quarter, and then another true up once options are exercised. That would make the measure very accurate.