e-Activity: Use the Internet to research a company in which you are interested a
ID: 2680437 • Letter: E
Question
e-Activity:Use the Internet to
research a company in which you are interested and review their financial
statements, with a focus on how the company is currently using options. Be
prepared to discuss.
Question 1:
Stock Options
Please respond to the following:
Based on what you discovered in the e-Activity,
determine the best way the company you research could leverage stock options to
offset employee compensation. Explain your rationale.
Question 2:
Cost of Capital
Please respond to the following:
Analyze the various ways to determine the cost
of capital and determine which is the most difficult to get right. Explain your
rationale.
Explanation / Answer
The SEC’s EDGAR database provides free public access to corporate information, allowing you to quickly research a company’s financial information and operations by reviewing registration statements, prospectuses and periodic reports filed on Forms 10-K and 10-Q. You also can find information about recent corporate events reported on Form 8-K but that a company does not have to disclose to investors. EDGAR also provides access to comment and response letters relating to disclosure filings made after August 1, 2004, and reviewed by either the Division of Corporation Finance or the Division of Investment Management. On May 22, 2006, the staffs of the Divisions of Corporation Finance and Investment Management began to use the EDGAR system to issue notifications of effectiveness for Securities Act registration statements and post-effective amendments, other than those that become effective automatically by law. These notifications will be posted to the EDGAR system the morning after a filing is determined to be effective. We currently are making enhancements to EDGAR. You can check our EDGAR Search Updates for the most recent changes. The SEC also is committed to transforming the EDGAR database from a form-based electronic filing cabinet to a dynamic real-time search tool with interactive capabilities using XBRL computer language.
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