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The problem is that either option costs money.
The board's new rule, requiring the deduction of option costs as expenses, is scheduled to take effect in early 2005.
The rules also increase disclosure requirements, forcing companies to estimate their stock option costs quarterly rather than annually.
And because this flex-fuel option costs less than $100 per car, making such a change is not exorbitant.
(A five-course dinner is $115, and a three-course menu, the only other option, costs $80).
Besides, these people say, option costs show up in the footnotes of companies' financial statements, so shareholders can assess their effects on results.
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Google's return on capital has halved to about 20%, after accounting for stock-option costs.
Profit before interest, taxes and stock-option costs rose more than 40percentto to about 600 million euros.
The Broadcom Corporation, the No. 1 maker of chips for cable modems, reported a fourth-quarter loss on acquisition-related and stock-option costs.
U.P.C.'s loss before interest, taxes, depreciation, amortization and stock-option costs could be smaller than 375 million euros ($342 million) instead of an earlier forecast of 400 million euros, the chief financial officer, Charles Bracken, said.
Smithers & Co, a London-based research firm, calculated the cost of these options and concluded that the American companies granting them had overstated their profits by as much as half in the 1998 financial year; overall, ignoring stock-option costs has exaggerated American profits as a whole by one to three percentage points every year since 1994.In this section Is Japan learning to smile?
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