Answer:
$168 million
Explanation:
Calculation to determine effect on earnings in the year after the shares are granted to executives
First step is to calculate the Fair value of shares represented by RSUs
Using this formula
Fair value of shares represented by RSUs=fair value per share×shares represented by RSUs shares granted
Let plug in the formula
Fair value of shares represented by RSUs=12 x 70million
Fair value of shares represented by RSUs=$840million
Now let calculate the effect on earnings
Using this formula
Effect on earnings=Fair value of shares represented by RSUs/Vesting period
Let plug in the formula
Effect on earnings= $840 million/5 years
Effect on earnings=$168 million
Therefore effect on earnings in the year after the shares are granted to executives is $168 million
Financial loss. Say you don’t have insurance and your house burns down. You have no insurance to fix the damage.
Answer:
True
Explanation:
Information asymmetry occurs when one of the two parties in a transaction has more information than the other. This causes the person that has the least information to likely make bad decisions.
In the question, we have an example of information asymmetry: incumbent managers simply have more information about the companies, because they have actually worked in managing them.
Outside managers, while as qualified as incumbent managers, do not have as much information about the companies, because they have not actually worked there.
Answer:
Change in an organization leads to many positive aspects – that lead to retaining a competitive edge and also remaining relevant in your business area. Change encourages innovation, develops skills, develops staff and leads to better business opportunities and improves staff morale
hope this helped you
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