Question
1 Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the companys stock. Whichever one you choose will be
1 Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the companys stock. Whichever one you choose will be awarded today. The stock is currently trading for $63 per share.
a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value?
b. Suppose that if you receive the stock bonus, you are required to
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
