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Share options are used by shareholders to reward senior managers because managers will


A) Become shareholders and their interests will become more closely aligned with the shareholders who hired them
B) Value the reward as they can sell the shares immediately for cash
C) Try to increase the Company's short-term gain, to sell their shares for greater profit
D) Avoid taking risks, to ensure the price of their shares does not calling
E) Appreciate any potential tax benefits from owning Canadian shares

F) C) and D)
G) A) and E)

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The EPS (Earnings Per Share) for Disco Documents Ltd. this year is $0.75. If the company has $1,575,000 capital invested and earned net income for the year of $412,500, how many common shares does the Company have outstanding?


A) 550,000
B) 38,181
C) 2,100,000
D) 309,375
E) 1,181,250

F) A) and B)
G) C) and D)

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