Employee Stock Options

question 70

Multiple Choice

Employee stock options

• A) Have a significant up-front cost to employers
• B) Can be resold through on option exchanges
• C) Usually have a vesting period
• D) Are no longer re-priced
• E) Generally have a 5-year life

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Definitions:

Total Equity

The total net worth of a company, calculated as the difference between total assets and total liabilities.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of profit generated from revenue.

Return On Assets

A ratio that measures a company's net income relative to its total assets. It indicates how efficiently a company is using its assets to generate profits.

Net Income

The company's overall earnings, calculated by taking away all taxes, costs, and expenses from its total revenue.