FX Bank has succeeded in hiring ace foreign exchange trader, Lucinda Cable. Her remuneration package reportedly includes

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FX Bank has succeeded in hiring ace foreign exchange trader, Lucinda Cable. Her remuneration package reportedly includes an annual bonus of 20 percent of the profits that she generates in excess of $100 million. Does Ms. Cable have an option? Does it provide her with the appropriate incentives?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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