Compare and contrast compensation plans, such as restricted stock and stock appreciation rights, indicating the key differences with the accounting treatment.Determine the option that would have the least effect on a company’s earnings.Recommend the choice that is the most advantageous to an employee. Support your position with examples.The following three questions are alternative questions. DQ#4 Stakeholders of a company must be aware of the limitations of relying on any specific ratio. Select any ratioand and describe some concerns a user might have regarding the use of this ratio in making a decision. DQ#5 Financial leverage is generally defined as the use of borrowed funds to increase profits. Financial risk isdefined more broadly to include the risk of default. What is the relationship, if any, between financial risk andfinancial leverage? DQ#6 Why would the calculation of a “Gearing Ratio” be an indicator of financial failure?