Question
Bonus Versus Stock A. The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the companys 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 companys stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?
B. What are the advantages and disadvantages of each option? Be sure to support your answers.
C. 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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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
