InvestorsHub Logo
Followers 6
Posts 1448
Boards Moderated 0
Alias Born 03/15/2005

Re: pual post# 16583

Thursday, 02/10/2011 2:08:22 PM

Thursday, February 10, 2011 2:08:22 PM

Post# of 19560
If the Tax Deduction is 75% of $32 Million, in other words $24 Million, then the Tax Savings would be calculated by Multiplying the Tax Rate (i.e. 15%) times the $24 Million Tax Deduction. 15% x $24 Million = $3.6 Million Total Tax Savings.

If 30 Million Shares Outstanding, Then Benefit to Shares:

$3.6 Million/30 Million Shares = $0.12/share

If stock trades at a Multiple of 5X, then:

0.12 x 5X = $0.60/share

Disclaimer: Please Note that Amounts and Computations above are based on a Purely Hypothetical Scenario, and Not Advice to Purchase Shares. Please invest responsibly.