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  3. in 2014 (year 0), mrs. linsey exercised a stock op

In 2014 (year 0), Mrs. Linsey exercised a stock option by paying $100 per share...

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Accounting

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In 2014 (year 0), Mrs. Linsey exercised a stock option by paying $100 per share for 225 shares of ABC stock. The market price at date of exercise was $312 per share. In 2021, she sold the 225 shares for $480 per share. Assuming that Mrs. Linsey is in the 35 percent tax bracket, has a 15 percent capital gains rate, and uses a 6 percent discount rate, compute the 2014 NPV of the cash flows from the exercise and sale if: (Use Appendix A) Required: a. The stock option was nonqualified. b. The stock option was an ISO. Snipping Tool Complete this question by entering

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