Sally Jameson Stock Options

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1. If we ignore tax considerations and assume that Sally is free to sell options at any time after her joins Telstar, which compensation package is worth more?

5. Is Helen Buono right that management would destroy value if all of the firm’s assets were redeployed into only the telecommunications business segment?

Question 5: Temporarily, ignore your work on questions 2, 3, and 4. Low’s luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the situation outlined in question 1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of 1.5% per month on the unsold inventory. What is his new EOQ?

1. Clarissa is considering two job offers. One has an annual salary of $61.1K and the other

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51. (LO2) Assume that on January 1, year 1, ABC Inc. issued 5,000 stock options with an estimated value of $10

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4. If Ms. Jameson decided that the option was a better deal, but was concerned with being too committed and reliant on the fortunes of Telstar, she could modify her compensation package to better suit her individual needs. Ms. Jameson would be taking considerable risk by keeping all of her bonus in Telstar for stock options with such a lengthy expiration date and also due to the historical data of Telstar showing that only stock prices reached $35 (the exercise price) only once.

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showed Mrs. Carter the job estimation sheet, it laid out the numbers showing that Lambeth could not do the job for less than $1,625. Right there Lambeth would lose $125 since Mrs. Carter was not willing to pay any more than $1,500, not to mention their $275 profit. If the company would have taken the job for $1,500, instead of $1,900, they would have lost a total of $400.

Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism.

The group project, Macmillan and Grunski Consulting, consists of two sections. The first part explains the case about discounted cash flow analysis, by answering the given nine questions. The second part discusses the retirement planning.

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