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12. Which of the following statements is correct? A. Stock options may be an eff

ID: 2463285 • Letter: 1

Question

12. Which of the following statements is correct?

A. Stock options may be an effective way to compensate and retain employees; however, they have a negative impact on a company's cash flows.

B. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's earnings.

C. A stock split improves the earnings per share of a company.

D. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's cash flows when issued.

Explanation / Answer

D. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's cash flows when issued.

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