This case requires students to prepare an analysis of the financial statements and footnotes from Microsoft to understand the consequences of its use of stock options. In addition to the overall analysis of Microsoft, stock options and their impact on the financial statements, the students more specifically April Microsoft, 2000 megagrant 70,000,000 options after a significant decline in stock prices Microsoft. The main issues that students need to learn: (1) differences in financial reporting under the intrinsic value and the fair value method, (2) the impact of options on the company's financial statements, (3) in favor of the tax on stock options, and (4 ) cost or benefit to Microsoft from providing stock options.
This Darden study. "Hide
by Richard Brownlee, Luann J. Lynch, Robert Blair Source: Darden School of Business 17 pages. Publication Date: July 10, 2001. Prod. #: UV0223-PDF-ENG
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