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lisov135 [29]
3 years ago
12

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensati

on plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 22 million of the company’s $1 par common shares for $13 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $15 per share. The fair value of the 22 million options, estimated by an appropriate option pricing model, is $3.90 per option.
Determine the total compensation cost pertaining to the incentive stock option plan.
Business
1 answer:
andriy [413]3 years ago
7 0

Answer:

$85.80 million.

Explanation:

The total compensation cost pertaining to the incentive stock option plan can simply be calculated by multiplying the the number shares the options permit holders to acquire by the fair value per option which is estimated by an appropriate option pricing model as given below:

Total compensation cost = 22 million × $3.90 = $85.80 million.

Therefore, the total compensation cost pertaining to the incentive stock option plan is $85.80 million.

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How Central Bank control the activities of the Commercial Bank?
pishuonlain [190]

The Central Bank is the "banker" to banks, government, and financial institution, where the Commercial Bank is the "banker" to the citizens. The Central Bank is the monetary authority of the country. The Central Bank does not deal with the general public, but Commercial Bank does

7 0
3 years ago
Project Organizational Capability
dem82 [27]

Answer:

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Explanation:

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3 0
3 years ago
What journal entry is made in a job-order costing system when $8,000 of materials are requisitioned for general factory use inst
Jlenok [28]

Answer:

(d) Manufacturing Overhead $8,000 Raw Materials $8,000

Explanation:

This will be an spending associate with the actual overhead.

These materials are indirect, so it should go in the factory overhead account.

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8 0
3 years ago
You are examining your choices of banks to open a new savings account. Costs include monthly maintenance fees and statement copy
lukranit [14]

The answer is: d. interest on deposits

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6 0
3 years ago
Read 2 more answers
Central City needs to have an income of $3,560,000. The total property is valued for taxation at $92,000,000.What is the tax rat
asambeis [7]

Answer:

3.87%

Explanation:

Data provided in the question:

Income needed by the central city = $3,560,000

Total Value of the property for the taxation = $92,000,000

Now,

The income needed by  the central city = Tax collected

or

The income needed by  the central city = Total Value of the property for the taxation × Tax rate

or

$3,560,000 = $92,000,000 × Tax rate

or

Tax rate = $3,560,000 ÷ $92,000,000

or

Tax rate = 0.0387

or

Tax rate = 0.0387 × 100%

= 3.87%

5 0
3 years ago
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