which of the following choices describes disadvantages to the company of offering equity-based compensation in place of cash compensation? (check all that apply.) multiple select question. the stock price on the market is likely to drop significantly if it is known that some individuals are buying at a discounted price. there is an opportunity cost of selling the stock to employees at a discounted price rather than selling it for fair market value on the open market. the number of shares outstanding increases which causes earnings per share to be diluted. in order to offer equity-based compensation, the company incurs a large cash outflow because it must first purchase the shares on the open market.