17. Regarding ESOs that are exercised, a firm will be entitled to a tax deduction: a. when the option is an N50 or a disqualifying disposition occurs b. only when a disqualifying disposition occurs c. when the option is an ISO d. when the option is publicly traded 18. For an analyst to incorporate ESOs into a valuation, the analyst must: a. All of the answers below are correct. b. forecast yet-to-be-granted ESOs c. estimate the value of outstanding ESOs d. estimate the marginal tax rate on ESOs