The stock price of ABC plc is currently at 30, and the company has 2 million shares

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The stock price of ABC plc is currently at £30, and the company has 2 million shares outstanding. The company’s CEO exercises 200,000 stock options with a strike price of £20. What will happen to the share price of ABC plc?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:03 AM

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The stock price of ABC plc is currently at 30, and the company has 2 million shares

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Exercising stock options can potentially increase the share price of ABC plc but the effect is not g...View the full answer

Corporate Finance

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