Preferred stock that pays $10 dividends per share per year 10. Which of the following is true about stock-based compensation? (check all that apply) The fair value of an option grant is always greater than the strike price of the option grant Stock-based compensation expense is always reported as part of Selling, General, and Administrative (SG&A) expense Stock-based compensation expense must be added back in the Operating section of SCF under the indirect method Stock-based compensation expense is adjusted based on movements in stock price after the exercise date Companies receive a tax deduction when employees exercise stock options