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Bonus Versus Stock A. The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company's stock, which

Bonus Versus Stock A.

The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company's stock, which has a current stock price of $50 per share.

  • Mathematically, what is the best choice? Why?
  • What are the advantages and disadvantages of each option? Be sure to support your answers.
  • What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

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