1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
QveST [7]
3 years ago
15

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at Janu

ary 1, 2021, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $33 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2021 (graded vesting). Pastner elects to measure the fair value of all options on January 1, 2021, to be $4.80 per option (tranche) using a single weighted-average expected life of the options assumption.
Determine the compensation expense related to the options to be recorded each year 2021-2024 assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately
Business
1 answer:
lesantik [10]3 years ago
7 0

Answer:

Compensation expense of $510,000 will be recorded each year 2021-2024

Explanation:

Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.

Compensation expense of $510,000 will be recorded each year 2021-2024

All the working is made in an MS Excel file and answer is made accordingly. Please find it.

Download xlsx
You might be interested in
At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred
Vika [28.1K]

Answer:

the earning per common share is $3.83 per share

Explanation:

The computation of the earning per common share is shown below

= Net income ÷ weighted number of outstanding shares

= $1,143,000 ÷ (298,000 shares)

= $3.83 per share

We simply divided the net income from the  weighted number of outstanding shares so that the earning per share could be determined

hence, the earning per common share is $3.83 per share

5 0
2 years ago
After initially self-publishing his debut novel, The Martian, author Andy Weir continued to revise and improve later versions of
Anna35 [415]

Answer:

The correct answer is letter "A": Guide product development with customer feedback.

Explanation:

Companies make market researches before starting the manufacturing of a product. However, even if a study has been conducted to have a clear idea of what consumers want, the initial product offered may not meet customers' needs for different reasons.

In such a case, <em>companies should take advantage of the feedback clients can provide about the product so those suggestions can be considered into the production process which will result in an output that matches better consumers' expectations.</em>

8 0
3 years ago
The weekly total cost of baking pies at Tasty Tortes is given by TC = 0.01 Q 1.5. Tasty’s marginal cost of producing 10,000 pies
Hoochie [10]

Answer: $1.50

Explanation:

TC = 0.01Q⁰.⁵

You get marginal cost when you differentiate the total cost.

MC = dTC / dQ

= 1.5 * 0.01 * Q¹.⁵ ⁻ ¹

= 0.015 * Q⁰.⁵

When Q is 10,000, the marginal cost is:

= 0.015 * 10,000⁰.⁵

= $1.50

3 0
2 years ago
An all-equity business has 100 million shares outstanding selling for $20 a share. Management believes that interest rates are u
dedylja [7]

Answer:

a) Market Value = $100 million × $20 = $2,000 million = $2 billion

Market value of equity would remain same = $2 billion

b) Market value would remain same after recap. Only market capitalization would reduce to half.

Market value of equity = 1 billion

c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.

d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.

e) Equity shareholders have gained due to increase in there share value

Explanation:

4 0
3 years ago
HMO coverage has much more flexibility than PPO coverage. Please select the best answer from the choices provided. T F
Rus_ich [418]
It is a completely false statement that HMO <span>coverage has much more flexibility than PPO coverage. The correct option among the two options that are given in the question is the second option. I hope that this is the answer that you were looking for and the answer has actually come to your help.</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • __________ is a sourcing strategy in which a company uses a single supplier for one particular part or service and another suppl
    15·1 answer
  • Dan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer
    13·1 answer
  • Smart Services performed $6,000 of services. Their customer paid $1,000 of the amount right away but charged the remaining amoun
    6·1 answer
  • A former client of charlie hayes, cpa, filed a lawsuit in state court alleging that charlie failed to exercise due care in the p
    11·2 answers
  • Companies HD and LD are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit
    13·2 answers
  • ________ are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm prod
    8·1 answer
  • Using PERT, Adam Munson was able to determine that the expected project completion time for the construction of a pleasure yacht
    15·2 answers
  • A prospective buyer who is represented by a broker signs a contract to purchase a property serviced by a septic system. The sell
    13·1 answer
  • Lake stevens marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30.
    6·1 answer
  • When an account payable is paid off in full, an entry is journalized that credits
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!