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Stolb23 [73]
3 years ago
6

On December 29, year 6, Kolek Company granted 100,000 stock options to a group of 100 employees, enabling each employee to buy 1

,000 shares for $20 per share. On the grant date, the shares had a market value of $16 per share and the options had a market value of $3.00 per option. The options vest over a 3-year period and become exercisable on January 1, year 10. Kolek Company expects that, based on historical turnover, they will lose approximately 3 of the employees receiving the options per year during the vesting period. Compensation expense will be recognized uniformly over the vesting period. Assuming all 100,000 options are exercised, what will be the net increase or decrease in stockholders’ equity as a result of the granting and exercising of the options
Business
1 answer:
Klio2033 [76]3 years ago
5 0

Answer: the net increase in stockholders’ equity as a result of the granting and exercising of the options will be $2,000,000

Explanation:

The granting of the stock options will result in total compensation expense of $300,000 over the 3-year vesting period, which will ultimately reduce retained earnings. It will be accompanied, however, by increases in additional paid in capital resulting in no net change to total stockholders' equity.

When the options are exercised, the company will be receiving $20 per share for 100,000 shares being issued, increasing stockholders' equity by $2,000,000.

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A couple advises a banker that their total income includes both salary and disability payments. How should disability payments,
Korolek [52]

The way that disability payments be analyzed in order to calculate the customer’s ability to pay are:

  • The use of SSA Notice of Award or any equivalent document “does not have a defined expiration date
  • The use of income from this source that qualifies income.

<h3>How do you calculate disabilities?</h3>

In the calculation of how much a person can receive as your disability benefit, there is the use of SSA via the use of the average amount a person have earned per month over the timeframe of their adult years, and one adjusted for inflation.

One can do so by entering your typical annual income. and this income will be adjusted to know the wage growth over a person's career.

Note that The way that disability payments be analyzed in order to calculate the customer’s ability to pay are:

  • The use of SSA Notice of Award or any equivalent document “does not have a defined expiration date
  • The use of income from this source that qualifies income.

Learn more about disability payments from

brainly.com/question/16810465

#SPJ1

5 0
1 year ago
Which of the following factors played an important role in speeding up globalization
tensa zangetsu [6.8K]
The reduction and removal of trade barriers.
8 0
3 years ago
Read 2 more answers
why would an email rule memo like this work better as an innovation driven company such as Tesla rather than at a manufacturing
wlad13 [49]

Answer:

Sorry I think brainest could do it again sorry

5 0
2 years ago
(04.03 LC)
klemol [59]

Answer:

C. Safe driving

Explanation:

Behavioral factors refer to the lifestyle habits of an individual.  Auto insurance premiums are largely determined by the risk involved, as assessed by the insurance company.  Insurance companies consider

  • the car and its safety features,
  • the driver's history and habits,
  • insured credit history, among other factors, when determining auto premiums.

Safe driving is a habit that develops in a driver over time. It is captured in the driver's driving history.  A driver with few incidents and accidents than other pay lower insurance premiums. However, accident-prone drivers, those who drive many hours per day, and night drivers will always pay high insurance premiums.

5 0
3 years ago
Suppose you examine the central bank’s balance sheet and observe that since the previous day, reserves had fallen by $100 millio
aksik [14]

Answer:

The Central Bank is trying to increase money supply.

Explanation:

When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.  

It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.

In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.

In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.

Cheers!

6 0
3 years ago
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