The company has offered you a 5000 bonus which you may


Bonus Versus Stock

A. The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company’s stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

B. What are the advantages and disadvantages of each option?

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Financial Management: The company has offered you a 5000 bonus which you may
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