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To: sea_biscuit who wrote (3133)1/29/1998 9:24:00 PM
From: Investor2  Read Replies (2) | Respond to of 42834
 
RE: "This new computation will result in higher EPS numbers for some companies that issue large amounts of stock options to their employees."

I believe (although I'm not sure) that companies will be reporting two "earnings per share" numbers. One, the diluted earnings per share, will consist of: net earnings divided by the total number of shares outstanding plus shares represented by in-the-money stock options. This is essentially the same as what used to be called the "fully diluted earnings per share." The new version (I forgot the name for it) consists of: net earnings divided by total shares outstanding. This new EPS measure is higher than the old "fully diluted earnings per share."

I'm not an accountant, but that's what I remember seeing written on the subject. I'll see if I can find information on SF128 (????).

Best wishes,

I2