Question
15. Suppose your employer offers you a choice between a $4,900 bonus and 100 shares of the company's stock. Whichever one you choose will be
15. Suppose your employer offers you a choice between a $4,900 bonus and 100 shares of the company's stock. Whichever one you choose will be awarded today. The stock is currently trading at $62.91 per share.
a. If you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? What is its value?
b. If you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? What will your decision depend on?
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Financial Crimes
Authors: Maximilian Edelbacher, Peter Kratcoski, Michael Theil
1st Edition
0367866528, 978-0367866525
