E8.5. Calculating the Loss to Shareholders from the Exercise of Stock Options (Easy) In 2004, an employee was granted 305 options on the stock of a firm with an exercise price of 520 per option. In 2009, after the options had vested and when the stock was trading at

$35 per share, she exercised the options. The firm's income tax rate is 36 percent. What was the after-tax cost to shareholders of remunerating this employee with options?