Redeemable and retractable at FMV

Matt would like your advice on which option is better for him and whether there is a better option.

After the reorganization, common shares of the company will be issued to Matt's $30-$year$-$old son for

a nominal amount.

Before you meet with Matt you want to:

$($A$)$ Assess the situation.

$($B$)$ Identify the issues.

$($C$)$ Analyze the issues.

$($D$)$ Advise$/$recommend$.$