Question: 1. Assuming they are awarded ethically and within the law, stock options are often touted as the perfect alignment mechanism for management incentives. a. Why

1. Assuming they are awarded ethically and within the law, stock options are often touted as the perfect "alignment" mechanism for management incentives.

a. Why is that?

b. In the case of a multi-division corporation, sometimes "phantom stock" or options of phatom stock, will be issued in order to create a tangible measure of the performance of a specific division of the company. If you were trying to set a value for the phatom stock, how might you do it?

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