10 ForbesmagazinecarriedanarticleonMarch6,2000,on
MicroStrategy, with this excerpt:
On Oct. 4 MicroStrategy and NCR announced what they
described as a $52.5 million licensing and technology
agreement.NCRagreedtopayMicroStrategy$27.5million
to license itssoftware. MicroStrategy bought an NCRunit
whichhadbeenacompetitorforwhatwasthen$14millionin
stock and agreed to pay $11 million cash for a data
warehousingsystem.MicroStrategyreported$17.5millionof
thelicensingmoneyasrevenueinthethirdquarter,whichhad
closed four days earlier.
11 Onlythree firms wrote off in-process R&D during the
prior decade (1980–1989). Z. Deng and B. Lev, “The
Valuation of Acquired R&D,” working paper, New York
University, 1999.
12 Anegativeeffectivetaxrateusuallyarisesbecauseafirm
is reportingan income in its taxbooks(on which it pays
taxes)andalossinitsreportingbooks.Aneffectivetaxrate
greaterthan 100 percentisindicativeofa firmthatreports
lowearningsinitsreportingbooksandhighincomeinitstax
books.
13 Sincethe effective taxrate is based on thetaxes paid
(whichcomesfromthetaxstatement),theeffectivetaxrate
willbelowerthanthemarginaltaxrateforfirmsthatchange
accounting methods to inflate reported earnings.
14 Themarginalcorporatetaxratesfordifferentcountriesare
on my web site (www.damodaran.com) under “Updated
Data.”