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zheka24 [161]
4 years ago
10

EG Corporation granted restricted stock units (RSUs) representing 32 million of its $1 par common shares to executives, subject

to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $6 per share on the grant date. Required: 1. Ignoring taxes, determine the total compensation cost pertaining to the restricted stock units. 2. What is the effect on earnings in the year after the shares are granted to executives?
Business
1 answer:
Naily [24]4 years ago
5 0

<u>Solution and Explanation:</u>

1. The following is used in order to calculate and ascertain the Computation of the total compensation cost pertaining to the restricted stock units:

32 million shares granted multiply with the $6 = $192 million fair value

2. Now, the  Effect on the earnings in the year after the shares are granted to the executives is calculated as follows:

The Profit will be decreased by ($192 divided by 4 year) $48 due to the allocation of Compensation expense.

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Company G takes advantage of the Internet and flexible manufacturing to create products that vary depending on the market it is
fiasKO [112]

Answer:  localization

Explanation: In simple words, localization refers to the prices in which a commodity is made in such a way that it matches with the taste and preference of local consumers that are actually targeted by the company.

            Localization helps a firm to sell its product by making individuals feel connected to the product on cultural basis. Localization instantly makes the customer feel that the offered product can be used in his or her daily life.

       Food chains like McDonald and subway providing extra spicy products in their menus in amaretto of India is a prime example of localization.

6 0
3 years ago
The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for th
Brilliant_brown [7]
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
7 0
3 years ago
Personal Selling is :
Firlakuza [10]

Answer:

Option A. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.  

Explanation:

The reason is that the personal selling is the face to face selling which means two way flow of communication is necessary. The seller will use his marketing exprience to influence the buyer which results in greater sales and customer satisfaction. So it is the face to face selling method which most of the companies opt and this way of selling is known as personal selling.

4 0
3 years ago
The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A
Tems11 [23]

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

6 0
3 years ago
​Treasurers, Inc., a manufacturer of gift​ articles, uses a single plantwide rate to allocate indirect costs with machine hours
Gekata [30.6K]

Answer:

predetermined overhead allocation rate is $228 per hour

Explanation:

given data

Estimated over head costs = $8,000,000

Estimated machine hours = 35,000

actual machine hours = 31,000

to find out

predetermined overhead allocation rate

solution

we know that predetermined overhead allocation rate is express as

predetermined overhead allocation rate = \frac{estimate overhead cost}{estimate machine hour}

put here value

predetermined overhead allocation rate = \frac{8000000}{35000}

predetermined overhead allocation rate = $228.571

so predetermined overhead allocation rate is $228 per hour

3 0
3 years ago
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