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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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Satisfaction is one of the first and most crucial steps of the staircase of motivation because motivation provides comfort to in
babunello [35]

Answer:

True

Explanation:

Satisfaction on the job has to do with achieving one's set out personal goals and also attaining growth over time in the job. To achieve this, the manager has a role to play also because the function he performs to motivate the Employees will determine if they are satisfied or not, the manager can help each employee attain growth in their chosen path by helping down through the ladder with task that are related to thier field hence giving them a form of satisfaction on the job and also reward for extraordinary performance by the manager tends to motivate the Employee to want to do more.

Fulfilment on the job is dependent on how much of much set out task individuals are able to accomplish and in the bigger picture, rhe manager comes into the center stage.

8 0
3 years ago
A firm is planning on paying its first dividend of $2 three years from today. After that, dividends are expected to grow at 6% p
BabaBlast [244]

Answer:

The intrinsic value of a share today is $16.87

Explanation:

Intrinsic Value of the share is calculated as below.

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Value of Share = Dividend / (Rate of return - Growth rate)

placing values in the formula

Value of share = $2 / (14% - 6%) = $25

$25 is the value of share after 3 year, to calculate today's value we have to discount it as below

Today's value of share = $25 x ( 1 + 14% )^-3 = $16.87

7 0
3 years ago
There is a system in the axon, separate from the movement of the action potential along the surface of the axon, that transports
Alik [6]

Answer: Synapse

Explanation: The synapse is a specialized (functional) intercellular approach between neurons, either between two association neurons, a neuron and a recipient cell or between a neuron and an effect or cell (almost always glandular or muscular). In these contacts the nerve impulse transmission takes place.

7 0
2 years ago
Which one of the following is a good way to deal with frustration?
Korolek [52]
Hey there!

The correct answer to this is D. Try to remove the obstacle that's blocking the goal. By doing so, we can create a positive change in our life :)

Thanks! :D
3 0
3 years ago
Read 2 more answers
A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
EastWind [94]

Group of answer choices.

A. the supply curve, resulting in a lower equilibrium price.

B. the supply curve, resulting in a higher equilibrium price.

C. the demand curve, as consumers try to economize because of the shortage.

D. the demand curve, resulting in a price ceiling in the market.

Answer:

B. the supply curve, resulting in a higher equilibrium price.

Explanation:

In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.

An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.

Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.

7 0
3 years ago
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