Differentiate between the market price and the issue price

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Reference no: EM131490768

Question: In February 1999, Boots, the leading retail chemist in the United Kingdom, announced plans to reform its employee option compensation scheme. In the future, it said, the firm will purchase its own shares to provide shares to issue when options are exercised, and it will charge the difference between the market price and the issue price for the options against profits. The charge for the first year was expected to be £63 million ($103 million). What de you think of this scheme?

Reference no: EM131490768

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