Leveraging tax deductions and stock options for value transfer

When stock options are exercised at $40 and the stock price rises to $60, there is a $10 billion transfer in value due to 500 million shares. The company receives a tax deduction of $10 billion, saving $3.5 billion in taxes. Consequently, the Coca-Cola company could potentially receive $23.5 billion by selling stock at $60 and using the tax benefits to buy back shares.