14. Since the magnitude of expected-value creation for the established busi-
nesses isn’t large enough to reach the stock price, the model must artifi-
cially extend the duration of value creation to compensate.
15. Alfred Rappaport,“Tips for Investing in Internet Stocks,”Wall Street Jour-
nal, 24 February 2000.
16. Note that the lower stock price also substantially reduces the ESO liability.
In this case,the ESO liability was roughly cut in half, exclusive of any new
grants. This underscores the notion that the ESO liability is dynamic.
17. Company managers can help this process by telling a great story. See J.
William Gurley,“The Great Art of Stor