Question
For your hard work your boss has decided to offer you a bonus. You may choose between receiving $ 10.000 in cash or 100 shares
For your hard work your boss has decided to offer you a bonus. You may choose between receiving $ 10.000 in cash or 100 shares of the company today. The current price of the company is $80. Suppose there are no taxes and that the shares can be freely at any point in time. Which of the following is true?
I. You should always choose the stock bonus in this situation
II.You should accept the cash bonus in this example regardless of whether you believe the stock will increase or decrease in value over time
III. It doesn't matter whether you choose the stack or cash handout
IV. You should only accept the stock bonus if you believe that the stock price will increase over time
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