To Keep the Value of the "Under-Water" Employee Stock Options

question 95

Multiple Choice

To keep the value of the "under-water" employee stock options afloat, company may

• A) shorten the vesting period
• B) raise the exercise price
• C) buy back all outstanding common shares in the market
• D) lower the exercise price
• E) lengthen the vesting period

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Definitions:

Carrying Costs

Expenses associated with maintaining inventory, including storage, insurance, and opportunity costs.

Cycle Counting

An approach to stock audit where a limited selection of the inventory at a defined site is enumerated on a chosen date.

Service Level

A measure of the performance of a service system, often defined in terms of responsiveness to customer needs and reliability.

Ordering Costs

The expenses associated with the process of requisitioning, purchasing, and receiving goods and services; includes costs of paperwork, communication, and inspections.