Answer:
$120,000
Explanation:
Given that,
stock options = 90,000
Each option can be exercised to acquire one share of $1 par common stock for $12.
Total Value of the option = stock options × fair value of the options
= $90,000 × $5
= $450,000
company to estimate that 10% of the options would be forfeited, so,
= 90% of Total Value of the option
= 0.9 × $450,000
= $405,000
2 out of 3 years = $405,000 × 2/3
= $270,000
= $150,000
Compensation expense (2019) = $270,000 - $150,000
= $120,000
Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.
Explanation:
Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as
Total Liabilities/ Total Assets
The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.
Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
Training is working hard and development is getting better
Answer:
False
Explanation:
When a country is in a liquidity trap , monetary policy both contractionary and expansionary would have an effect on interest rate
