April Young brought an article in the WSJ to my attention. Firms must estimate how much they will pay in income tax to estimate how much net they earn, ie, avaialable to common shareholders. Well, as we have seen in INTERMED II, that depends on the charge for options exercised. Well that depends on how the stock price does. This dog is really chasing its tail. This is such a good article and if you have the WSJ, Page C1 of April 16, 2007 Tech Titans Tax picture is Clouded by Options. This is another good example that calculating income is a matter of estimation.
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