Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (183089)	1/16/2006 4:21:40 PM
From: TimF	Respond to of 186894

First, it is not an actual "steady growth" in option's cost, it is an increase in accord to accounting formula The same question still applies. Does the formula result in 19% in year one, 38% in year two 54% in year three ect, or is it just 19% a year for the next 5 years. But maybe the question doesn't even make sense. I don't see how you get from "Options as pct. of 2004 profits Intel - 19%" to "I assume the next year "option expenses" for new options will add to the current number. So, given current trend, expect in 5 years x 19%/year = 95% of profits, give or take". Tim