Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 44

Assume that you will soon graduate from college and that you have job offers with two pharmaceutical firms.he first offer is with Alpha Research, a relatively new and aggressive company.he second is with Omega Scientific, a very well established and conservative company.
Financial information pertaining to each firm, and to the pharmaceutical industry as a whole, is as follows:

The Omega offer is for $46,000 per year.he Alpha offer is for $42,000.owever, unlike Omega, Alpha awards its employees a stock option bonus based on profitability for the year.ach option enables the employee to purchase shares of Alpha's common stock at a significantly reduced price.he more profitable Alpha is, the more stock each employee can buy at a discount.
Show how the above information may help you justify accepting the Alpha Research offer, even though the starting salary is $4,000 lower than the Omega Scientific offer.