10 tion 041 l | | | \\ | Question 2, Problem 3-3 aliyaahmed 09/22/25 10:06 PM @ Part 5 of 5 HW Score: 8.33%, 1 of 12 felon cy Points: 0 of 1 $63.98 per share. er offers you a choice between a $5,000 bonus and 100 shares of the company's stock. Whichever one you choose will be awai a. Suppose that if you receive the stock bonus, b. Suppose that if you receive the stock bonus, ded today. The stock is currently trading at you are free to trade it. Which form of the bonus should you choose? What is its value? you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on? Gans z a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value? If you are free to trade the Stock, the value of the stock bonus today is $ 6398 . (Round to the nearest dollar.) The value of the cash bonus is $ 5000 . (Round to the nearest dollar.) Ls Which bonus should you choose? (Select from the drop-down menu.) You should choose the stock bonus b. Suppose that if you receive the sto (Choose all the answers that apply) Oa next year, its value to you could be less thai Os. ck bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on? Because you could buy the stock today for $6,398 if you wanted to, the value of the stock b in $6,398. Since you work for this company, stock bonus. Oc. onus cannot be more than $6,398. But if you are not allowed to sell the company's stock for the you are considered to be a stakeholder. This implies that, for you, the company's shares are worth more than $6,398 today. Therefore, you should take the The stock's value will depend on what you expect it to be worth in one year, as well as how you feel about the risk involved. There is no clear- taking the stock today and having to hold it for a year involves risk. (1D. You might decide that it is better to $5,000 today in another equally ris} cut answer to which alternative is best because take the $5,000 in cash than to wait for the uncertain value of the stock in one year. This would be especially true if you believed you could invest the ky asset that would be worth more than the stock one year from now. Get more hel cali