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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: GO*QCOM who wrote (10946)5/28/1998 3:38:00 PM
From: Gregg Powers  Read Replies (1) | Respond to of 152472
 
When you think about it, the distribution ratio is not particularly important. If the equity asset base is valued at $250mm, and the shares are distributed one-for-one, the new company should trade for something around $3.50/shr. Assuming the same equity value, a one-for-ten distribution would simply result in a $35.00/shr value etc. Bottom line is that the mechanics are less important than the economics.

Best regards,

Gregg