Which of the Following Is Not a True Statement Regarding

question 1

Multiple Choice

Which of the following is not a true statement regarding stock options?

• A)They may cause dilution of earnings per share
• B)They generally allow the purchase of common stock at favorable terms
• C)They involve a compensation expense
• D)Exercise improves the short-term liquidity and debt position of the issuing firm
• E)The potential dilution can be disregarded in financial analysis

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