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Which of the Following Is Not a True Statement Regarding

Question 17

Multiple Choice

Which of the following is not a true statement regarding stock options?


A) They may cause dilution of earnings per share
B) They generally allow the purchase of common stock at favorable terms
C) They involve a compensation expense
D) Exercise improves the short-term liquidity and debt position of the issuing firm
E) The potential dilution can be disregarded in financial analysis

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