Business
Business, 15.04.2020 17:34, ShernelQS17

Dell Computer had outstanding stock options of 344 million at the end of fiscal year 2001 (outstanding shares are 2,601 million). This is a potential problem to investors because:

a. Potential dilution of common stock of over 13%
b. Severe leverage problem because of the option obligations
c. Of the huge compensation expense that reduces net income
d. The company is obviously near bankruptcy

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Answers: 2

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