Answer:
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.
Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include
Answer:
The Rubber Meets the Road has issued shares at discount to market price to its shareholders (Right Issue)
Explanation:
These tactics are used by the company who wants to defend itself from the acquirer because they think they will damage the company values, culture, restructure business processes and change in people who work and are part of the organization. In other words they think are a family and will loose each other and the associated benefits now they are enjoying so what they do is they upper management issues the rights to its existing shareholders at discount to market value.
The investment doesnot seems attractive as the benefit are no more if the acquirer pays extra dollars to buy the 50% shares which have been increased due to right issue. So the statement hostile takeover means the defending strategy of the firm that the acquirer wants to acquire its control by buying more than 50% shares.
Answer:
The correct option is slow growth in productivity
Explanation:
The United States experienced slow growth in average income between the 1970s to 1980s, more than three decades after the second World War. However the gap between the highly paid and the low-paid workers have been steadily on the increase. Of all the reasons behind this, the major stand-out reason was the slow growth in productivity experienced in the United States as a result of the recession at that time.
Answer: the correct option is A. Expenditure.
Explanation: From the scenario given above, we can see that this is a government expenditure.
Government expenditure include all the purchases of goods and services that are categorized as; public consumption and public investment, and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer.
One thing to note is that governmental fund types make use of the modified accrual basis of accounting which focuses on the flow of financial resources.
Therefore, the use of financial resources by the government will be considered as an expenditure and not an expense.
Answer:
Put Price = $4
Explanation:
We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price
$30 + Put Price = $4 + $30
Put Price = $4 + $30 - $30
Put Price = $4
Thus, the price of six month put option = $4
