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After-tax cost to shareholders of remunerating

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Reference no: EM132681575

In 2018, an employee was granted 500 options on the stock of a firm with an exercise price of $20 per option. In 2020, after the options had vested and when the stock was trading at $40 per share, she exercised the options. The firm's income tax rate is 36 percent. What was the after-tax cost to shareholders of remunerating this employee with options?

Reference no: EM132681575

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