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Advanced Corporate Finance

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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?

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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.

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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 ...

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Radhika Lakshmi, MPhil
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  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
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