A company's stock price is $50 and 10 million shares are outstanding. The company's considering giving its

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A company's stock price is $50 and 10 million shares are outstanding. The company's considering giving its employees 3 million at the money 5-year call options. Option exercises will be handled by issuing more shares. The stock price volatility is 25%, the 5-year risk-free rate is 5% and the company does not pay dividends. Estimate the cost to the company of the employee stock option issue

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