Fair Value of Stock Options
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Do you think the fair value method is an accurate way for an organization to recognize compensation expense related to the options?
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Solution Summary
This solution explains different facets of fair value method of calculating the value of stock option expense. The sources used are also included in the solution.
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Fair value method is not an accurate way for an organization to recognize compensation expense related to the option. The inaccuracy comes in because the market value is used in fair value calculations. One of the common methods used for fair value of stock is the ...
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