Which of the Following Increases the Expected Life of Employee

question 14

Multiple Choice

Which of the following increases the expected life of employee stock options?

• A) An increase in the vesting period
• B) An increase in employee turnover
• C) A fast growth rate for the stock price
• D) A tendency for employees to exercise earlier than in the past

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Definitions:

Return On

generally starts a financial metric indicating the efficiency of an investment or comparing the efficiency of several investments, measuring profit in relation to capital invested.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity.

Common Stockholders' Equity

The portion of a corporation's equity that belongs to holders of its common shares, consisting of capital invested by the shareholders plus retained earnings.

Management's Discussion

An analysis provided by the management of a company, typically found in the annual report, detailing past performance and future outlook.