First some answers on a not so serious note: 1. Make an estimate, then multiply by 2, divide by 0.134263 and take the square root after adding Pi times the estimate times 12.345 2. Use a dart board and get some friends together to change the numbers to very high 8 figures. The one person that hits the same estimate range on the dart board 3 times is the closest to the estimate. 3. Take a wild swing and at the end of the report, cite the analyst firm IMTSU 2006 (I Made This Stuff Up). There are 3 portions to the cost of resolving the options backdating issue: 1. Tangible costs - Regulatory fines and expenses - Internal investigation fees - Audit investigation fees - Documentation & restatement fees - Back tax dues and penalties and interest - Share holder lawsuits: Settlement fees, Defense fees 2. Intangible costs - Market capitalization loss - Employee turnover (not easy to guesstimate, but rest assured there will be some) - Internal & external communication expenses - (If delisted): stock appreciation opportunity costs 3. Variable expenses - Reduced revenue from customer becoming nervous about purchasing products For the 3 companies we have worked with estimating $100 Million for a $3-5 Billion market capitalization in Tangible costs alone is on the average side. http://blog.vangal.com |
