(Solved): Multiple Choice Question Which one of the following choices describes a disadvantage to the company ...

Multiple Choice Question Which one of the following choices describes a disadvantage to the company of offering equity-based compensation? The stock price on the market is likely to drop significantly if it is known that some individuals are buying at a discounted price. The number of shares outstanding decreases which causes earnings per share to be overstated. There is an opportunity cost of selling the stock to employees at a discounted price, rather than selling it for fair market value on the market. ket.