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

To: Proud_Infidel who wrote (67874)	5/12/2005 9:18:59 AM
From: BWAC	Read Replies (3) \| Respond to of 77400

Oh good grief. Give it up on the options giftaways already. Just stop issuing them. Value equal zero. Or use something simple. Buybacks (if in place) determine the expense. Buyback stock at an average of $18, Issue Options at $19, Zero expense. You made an invesment of $18, on which eventually you will get $19 paid back in return. Hell call it a profit. Or impute some interest expense component that could have been achieved on the $18 cash forgone over the time period until exercise. Point being, UNTIL the cash paid upon option exercise is somehow recognized then the transparency and accuracy of the accounting theory is flawed. The transaction as a whole has not been considered.