Question
According to the Tesla 10-K for the year ending December 31, 2020, the CEO receives a bonus (stock option awards) if certain Revenue and Adjusted
According to the Tesla 10-K for the year ending December 31, 2020, the CEO receives a bonus (stock option awards) if certain Revenue and Adjusted EBITDA milestones are met. This has been policy since 2018. Recall from Module 1 that EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is a number that Tesla arrives at in doing additional, minor adjustments to the EBITDA number.
Say, hypothetically, for one year, Revenue increases by 5% and Adjusted EBITDA increases by 20%, compared to the previous year.
According to this hypothetical scenario, which of the following is likely to be true?
Group of answer choices
COGS and Operating Expenses increased dramatically
COGS and Operating Expenses decreased dramatically
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