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A Company Surprises the Market with an Announcement That It

Question 9

Multiple Choice

A company surprises the market with an announcement that it has granted stock options to senior executives.The options are exercised four years later.When does dilution take place?


A) Dilution takes place when the options are exercised
B) Dilution takes place on the announcement date
C) Dilution takes place gradually over the four years
D) There is no dilution

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