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To: Lizzie Tudor who wrote (67298)3/10/2005 8:17:01 AM
From: GVTucker  Respond to of 77400
 
Lizzie, RE: yeah I can read, so let me ask you again.

Did Google EXPENSE EMPLOYEE OPTIONS using the BLACK SCHOLES approach to valuing options in their material distributed to potential investors at IPO? And in the subsequent quarters thereafter?


Well, that's the first time you asked that, but I'll answer.

Google expensed options in their financials. They showed what their earnings would be if they expensed options using a 5 year amortization, and they showed what their financials would be using Black-Scholes.

In both cases Google was easily profitable.