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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (30600)	5/25/1999 10:20:00 PM
From: Sun Tzu	Respond to of 70976

Ok, let me start the series for you. This is what the company will earn each year for the next 100 years: 1, 1.08, 1.17, 1.26, 1.36,...,2199.76 You should at the very least add up all these earnings to find out how much money the company is going to make over the course of the next 100 years. However, a smart company will not let these earnings stay idle; it will invest them in a business that will consistently grow at 8% <g> Implicit in above scenario is that it does not cost the company all its current earnings to make the target for next year's earnings. In fact, we are assuming that it costs the company almost nothing to grow its earnings because it is the premier etailer on the Internet and it already has the necessary infrastructure in place. Growth happens simply because the world will flock to the internet and will go online <vbg> After all, what is the incremental cost to Worldcom for every additional packet sent over its wires? Sun "I made an extreme example just to show the point" Tzu