Suppose your employer offers you a choice between a $ 5 comma 000 bonus and 100 shares of the company's stock. whichever one you choose will be awarded today. the stock is currently trading at $ 63.38 per share. a. if you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? what is its value? b. if you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? what will your decision depend on?

a) I will pick the shares and sell them ,as this will yield a better return 6,338 to 5,000

b) I will consider:

the expectation on the stock priceand the rate of return in the marketat current price, it will yield 26.76%

Explanation:

100 shares x 63.38 = 6,338 cash bonus for shares

If the stocks should be retained for at least a year.

there are two components that will need consideration:

the expectation on the stock price

and the rate of return in the market

if we assume the stock will keep the same value then it will yield:

6,338 / 5,000 - 1 = 0.2676 = 26.76%

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The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.