Explore BrainMass

Explore BrainMass

    Advanced Corporate Finance

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assuming you are working for Apple Inc and part of your compensation takes the form of stock options.

    Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $520, at the time that you exercise the option.

    As an option holder yourself, would you prefer that Apple uses dividends or share repurchases to pay out cash to its shareholders?

    © BrainMass Inc. brainmass.com December 24, 2021, 11:17 pm ad1c9bdddf
    https://brainmass.com/business/finance/advanced-corporate-finance-554319

    Solution Preview

    Assuming you are working for Apple Inc. and part of your compensation takes the form of stock options.

    Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $520, at the time that you exercise the option.

    As an option holder yourself, would you prefer that Apple uses dividends or share ...

    Solution Summary

    The advanced corporate finance for Apple Inc compensation is given. The differences between Apple's stock price and the exercise price is provided.

    $2.49

    ADVERTISEMENT