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After tax, the cost just went up to $125mm That's only assuming the company is trading at $1/share, which Cuban's proposal is saying should be taxed at $0.05/s
by ahlatimer 16y ago
After tax, the cost just went up to $125mm
That's only assuming the company is trading at $1/share, which Cuban's proposal is saying should be taxed at $0.05/share, raising the cost to $105mm. The actual tax will be dependent on the valuation of the company divided by the number of shares there are. It's not a straight 25% tax across the board.
- joelhaus 16y agoThanks, this illustrates the first problem well, I was just pointing out the kind of impact Cuban's proposal could have on a valuation. Any tax implemented like this would still have a proportionate effect on returns. Not sure that anyone is trying to make a case that we need less shares; rather, we need a system that incentivises a focus on fundamentals.