1.Compare and contrast compensation plans, such as restricted stock and stock appreciation rights, indicating the key differences with the accounting treatment.

2.Determine the option that would have the least effect on a company's earnings.

3.Recommend the choice that is the most advantageous to an employee. Support your position with examples.

4.Stakeholders of a company must be aware of the limitations of relying on any specific ratio. Select any ratio and describe some concerns a user might have regarding the use of this ratio in making a decision.

5.Financial leverage is generally definedas the use of borrowed funds to increase profits.Financial risk is defined more broadly to include the risk of default.What is therelationship, if any, between financial risk and financial leverage?

6.Why wouldthe calculationof a "Gearing Ratio" bean indicator of financialfailure?