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Employee Stock Options and Equity Valuation

Author: Mark Lang

Description

Stock options represent a significant claim against companiesthat should be reflected in their valuations, but valuing employee stock options is complex. Fortunately, in this Research Foundation of CFA Institute monograph, Mark Lang presents an excellent framework for valuing these claims by balancing the obligation of the company to fund outstanding options and future grants with the benefits arising from the incentive effects of options.

Keywords

Stock Stock Options Equity Valuation Option Exercise Employees Cash Flow Valuation

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