Is each statement true or false?
a. The expected return on stock appreciation rights always exceeds the expected return on the underlying stock.
b. The financial reporting differences for compensating employees with stock appreciation rights and stock options lead small start-up companies to prefer granting stock appreciation rights to their employees.
c. A nonqualified option is preferable to an incentive stock option for tax purposes.
d. The TRA 86 made incentive stock options less attractive.