Question: Compared to the reported 2009 fi nancial statements, if Stereo Warehouse had used the 2007 expected volatility assumption to value its employee stock options, it

Compared to the reported 2009 fi nancial statements, if Stereo Warehouse had used the 2007 expected volatility assumption to value its employee stock options, it would have most likely reported higher:

A . net income.

B . compensation expense.

C . deferred compensation liability.

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