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Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can
Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 20% discount. During 2021, employees purchased 28 million shares; during this same period, the shares had a market price of $10 per share at the end of the year. Martin's 2021 pretax earnings will be reduced by:
a) $56 million.
b) $224 million
c) $280 million
d) $0
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