12. Which of the following statements is correct? A. Stock options may be an eff
ID: 2463285 • Letter: 1
Question
12. Which of the following statements is correct?
A. Stock options may be an effective way to compensate and retain employees; however, they have a negative impact on a company's cash flows.
B. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's earnings.
C. A stock split improves the earnings per share of a company.
D. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's cash flows when issued.
Explanation / Answer
D. Stock options may be an effective way to compensate and retain employees and they have no impact on the company's cash flows when issued.