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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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