Question 20: Read the below article excerpt for context, or skip to the question if youre\ already familiar with it.\ In his 15 August 2022 article Why Atlassian is one of the worlds most overvalued\ businesses, Adam Schwab outlined that Atlassian pays a huge amount of equity-based\ compensation to employees. This expense is deducted in Atlassians profit and loss\ (P&L) statement. However, on the cash flow statement, the 30 June 2022 quarters\ (Q422) US$163.891 million Share-based payment expense is added back to Net cash\ provided by operating activities.\ Note that practitioners commonly calculate operating free cash flow (OFCF) by adding up\ the net cash provided by operating activities (usually positive) and purchases of non-\ current assets (CapEx, usually negative) inside the investing activities on the cash flow\ statement (perhaps adding back InterestExpense*(1-tc) too if it wasnt already).\ Schwabb quotes the Atlassian founders Mike Cannon-Brookes and Scott Farquhar in\ their letter to shareholders: We capped off FY22 with strong free cash flow results, even\ as we continue to invest against the sizable market opportunities in front of us. Free cash\ flow for Q422 totalled US$194.697 million, representing a 26% free cash flow margin\ [=OFCF / Sales = 194,697 / 759,841]. Our strong financial position provides us with the\ flexibility to invest purposefully and create value for our customers.\ Shwabb complains that ignoring wages in any sort of performance metric [such as free\ cash flow margin] is completely misleading.\ Which of the below statements is NOT correct? Share-based payment:\ (a) Expense is a non-cash expense that needs to be added somewhere in the cash flow\ statement given that its an accrual thats subtracted in the P&L.\ (b) To employees is costly to other shareholders since it increases the number of shares\ in the company, diluting their ownership proportion.\ (c) Works similarly to an equity raising, but instead of the company being paid in cash for\ selling the new shares, the company is paid in the employees time spent working hard.\ (d) Expense should affect OFCF. If it did, the Atlassian founders could have said: free\ cash flow for Q422 totalled US$358.588 million (=194.697+163.891), representing a 47%\ (=358.588/759.841) free cash flow margin.