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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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In Lean/JIT systems the burden of ensuring quality of production inputs from vendors shifts from the _____________ to the ______
irina [24]

Answer:

Buyer/seller

Explanation:

In the case of lean system it focused on the customer side while on the other hand the JIT i.e. Just in time focused on the manufacturing process i.e. efficiency

So in the case of lean or JIT system the burden for ensuring the production quality from vendor shifts is from the buyer to the seller

Therefore the above represents the answer

6 0
2 years ago
Upon beginning her career at davidson inc., a small consulting firm, stephanie benjamin receives a copy of the firm's organizati
7nadin3 [17]
Upon beginning her career at Davidson inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will clarify positions and reporting relationships within the firm. Correct answer: B
<span> The organization chart illustrates the relationships among positions within an organization . The chart has usual five elements: job design, departmentalization, delegation, span of management, and chain of command.</span>
6 0
3 years ago
Assume you short sell 100 shares of IBM common stock at $125 per share. If the initial margin is 70%, what is the amount that yo
zhuklara [117]

Answer: d) $8750

Explanation:

The Cash buffer is also the margin of the total value of the stock.

= Initial margin * Investment value

= 70% * (125 * 100)

= 70% * 12,500

= $8,750

3 0
3 years ago
The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the
konstantin123 [22]

Answer:

c) 10%; stays the same. 

Explanation:

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.

Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.

I hope my answer helps you

7 0
2 years ago
b. Now suppose instead that housing credits are withdrawn gradually at a rate of $500 for each $1,000 that someone is earning ab
zavuch27 [327]

Answer: $0

Explanation:

Layla qualifies for $8,000 in housing credits.

These are withdrawn at $500 for every $1,000 she earns above the wage limit of $26,500

Layla's annual income = 35,000 + 7,500

= $42,500

Amount earned above limit = 42,500 - 26,500

= $16,000

Amount of housing credit withdrawn is $500 per thousand so for $16,000, $8,000 will be withdrawn from her housing credit.

Housing credit = 8,000 - 8,000

= $0

5 0
3 years ago
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