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Your employer offers you a choice between a $5,000 bonus and 100 shares of the companys stock. Whichever one you choose will be awarded today.
Your employer offers you a choice between a $5,000 bonus and 100 shares of the companys stock. Whichever one you choose will be awarded today. The stock is currently trading at $63 per share.
c. Suppose that your position in the company is very important. Your employer acknowledges that and (regardless of your choice above) offers you 150 additional
shares of the companys stock, which you will be required to hold for at least two years before selling them. Will that extra stock bonus incentivize you to work harder
and why?
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