3.8 Classification of Cash Flows Related to Share-Based Compensation. One reason companies use stock options to compensate employees is to conserve cash. Under current tax law, companies get to deduct compensation when the employees actually exercise options. Explain how the cash flow savings from stock option exercises affect the statement of cash flows.
3.8 Classification of Cash Flows Related to Share-Based Compensation. One reason companies use stock options to compensate employees is to conserve cash. Under current tax law, companies get to deduct compensation when the employees actually exercise options. Explain how the cash flow savings from stock option exercises affect the statement of cash flows.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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3.8 Classification of Cash Flows Related to Share-Based Compensation. One reason companies use stock options to compensate employees is to conserve cash. Under current tax law, companies get to deduct compensation when the employees actually exercise options. Explain how the cash flow savings from stock option exercises affect the statement of cash flows.
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