Re:Fantasy Math Is Helping Companies Spin Losses into Profits
by jpeg_hero on Tuesday April 26, 2016 @12:43AM
(#11569498)
fully diluted eps?
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Re:Fantasy Math Is Helping Companies Spin Losses into Profits
by kgwgk on Tuesday April 26, 2016 @04:13AM
(#11570200)
How do you think they help? Imagine a company with 1mn shares trading at $100, with $5mn earnings (ignoring taxes for simpliciy), i.e. $5 per share. Let's say they can reduce cash compensation to employees by $5mn giving instead $10mn in stock (0.1mn new shares). GAAP earnings are now $0 per share. Fully-diluted earnings (excluding stock based compensation) are $9.1 per share.