In 2010, an employee was granted 300 options on the stock of a firm with...
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Finance
In 2010, an employee was granted 300 options on the stock of a firm with an exercise price of $25 per option. In 2015, after the options had vested and when the stock was trading at $40 per share, she exercised the options. The firms income tax rate is 30 percent. What was the after-tax cost to
shareholders of remunerating this employee with options? What would cost to shareholders be if company used exercise date accounting method?
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