4. Despite its large cash reserves, the CFO has just announced the firm is going to borrow money to pay higher dividends. You wonder if this means something’s wrong with the business.
What you’ll learn while earning your MAC: Your CFO is pretty smart. Borrowing is cheap right now, thanks to low interest rates, and paying higher dividends to shareholders will boost the stock price. Got co-workers who are asking the same thing? With your MAC classes, you’ll be able to explain the decision to them.
Your instant upgrade: Knowing what’s behind your company’s financial decisions will help you better understand why and how top management make certain decisions, and what that could mean for your future with the firm.
5. Your employer has recently added “non-qualified stock options” to the compensation plan for you and many of your peers. You know that means you can buy company stock in the future, but what are they truly worth?
What you’ll learn while earning your MAC: The concept of stock options isn’t too hard, but to get the most value from them takes smarts. The value of options depends on the stock price when you exercise it — usually that’s NOT when the options are granted to you. Typically there are limits on when you can exercise those options — when they “vest.” Also, once you exercise an option and buy stock, there are tax implications depending on what you do with those shares and when you do it.
Your instant upgrade: Being able to analyze complex compensation choices, such as stock options. That’s useful if you’re receiving those options, and useful if, one day, you’re the one deciding whether to grant them to employees.
Interested in learning more about how taking accounting classes will make improve your business savvy and fiscal intelligence? Download this free learning guide about some of the other financial insights you’ll receive as you earn a MAC degree.