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Case 08-2 Sooner or Later On January 1, 2006, Sooner or Later Inc. granted 1,000 "at-the-money" employee stock options (i., the exercise price was...

Should Sooner or Later use the $6 grant-date fair value or the $9 grant-date fair value to measure its compensation cost? Over how many years should Sooner or Later recognize compensation cost associated with the stock options, and how much, if any, should be recognized in each of those years?

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