Compare an offer without spending paper value
See this course’s project requirements
An equity-offer file with grant terms, vesting, exercise-cost scenarios, dilution, deadline questions and a cash-based offer comparison.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- An offer term sheet separating salary and contingent equity.
- A vesting calendar and departure scenario. An exercise-cost worksheet with three hypothetical price scenarios.
- A simple dilution calculation and denominator questions.
- A departure deadline map and tax-adviser question list.
- A complete equity-offer comparison with a conditional recommendation.
Review and revise
Use these criteria to check your work and choose what to improve.
- Calculations reconcile to the supplied records, with units and dates labeled.
- Assumptions and missing information are visible, including the changed scenario.
- The recommendation follows the evidence and explains an important limitation.
- The six lesson outputs form a usable handoff that another learner can check.
Want more background?
The idea in everyday life
Offer A: $48000 salary plus Cedar’s options. Offer B: $51000 salary and no equity. Benefits and hours are identical in this fictional comparison. Monthly gross-cash requirement is $4100. No equity can be sold during the coming year.
Judge reliable cash and contingent equity in separate scenarios. Unknown value should remain unknown.
Compare an offer without spending paper value — worked practice
Judge reliable cash and contingent equity in separate scenarios. Unknown value should remain unknown.
Offer A: $48000 salary plus Cedar’s options. Offer B: $51000 salary and no equity. Benefits and hours are identical in this fictional comparison. Monthly gross-cash requirement is $4100. No equity can be sold during the coming year.
1. Compare cash
Divide each salary by 12.
You should see: A $4000; B $4250 monthly gross.
Use comparable pay periods.
2. Apply the requirement
Compare with the $4100 gross-cash threshold.
You should see: A is $100 short; B is $150 above.
Equity cannot fill the first-year cash gap in this case.
3. Attach equity scenarios
Include vesting, cash cost, dilution and deadlines from prior lessons.
You should see: A’s potential equity remains contingent and separate.
The comparison respects uncertainty.
4. Write decision memo
Recommend B for the stated cash criterion; state that different priorities could change the choice.
You should see: The finished memo explains its criterion and limitations.
This is a fictional decision, not advice for a real offer.
What to finish
A complete equity-offer comparison with a conditional recommendation.
Watch for this
Adding an uncertain option estimate to guaranteed salary.
How can I tell I understand it?
Explain your calculation or classification and reproduce the changed case without copying the worked result.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkOptional course overview video · same video as Lesson 1
What are stock options, and how do they work?
From Carta. Watch here or open it on YouTube .
Optional course overview. Follow the written steps below at your own pace.Tools, templates, and lesson sources
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Sources and further reading
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Source & access notes · checked 2026-09-12
Inspected distinction between employee options and employee stock ownership retirement plans.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
Source & access notes · checked 2026-09-12
Inspected statutory/nonstatutory distinctions and tax events; no individualized tax computation is taught.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
Source & access notes · checked 2026-09-12
Inspected compensatory securities exemption and resale restrictions. Fictional terms control all exercises.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
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