Answer:
allow the holder the option to buy shares at a specified exercise price during a specified period of time.
Explanation:
A primary market refers to the market where these securities that are being sold are issued or created
On the other hand, the secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
Executive stock options (ESOs) can be defined as an equity compensation contract that are granted to the employees and executives of a company, giving them to right to buy a specific amount of shares from the company's stock at a particular price for a specificied period of time.
Basically, ESO allows the holder the option to buy shares from the company's stock at a specified exercise price or strike price for a specific period of time.
The main purpose of an ESO is to serve as an incentive to make the beneficiaries or holders improve the financial performance of a company while closely aligning their interests with those of the shareholders of the same company.
We went for a drive, 2:30 in the morning
I kissed you, it was pouring
We held each other tight before the night was over
You looked over your shoulder
Oh, I was doing fine
You said, "Remember that night?
Remember that night?"
Oh, I was doing fine
You said, "Remember that night?
Remember that night?"
Answer and Explanation:
The computation of the minimum transfer price is shown below:
a. For Not operating at full capacity
Minimum transfer price = Variable cost + Opportunity cost
= $3 - $0.20 + 0
= $2.80
b. For operating at full capacity
Minimum transfer price = Variable cost + Opportunity cost
= $2.80 + $8 - $3
= $2.80 + $5
= $7.80
We simply applied the above formulas
So, that the each part could come
If you don't set expectations high enough, too few customers will be willing to try your product. The result will be a tiny base of highly satisfied customers, which usually isn't enough to sustain a business it will happen <span>when a marketer falls into the trap of under promising</span>
Answer:
May 1
Cash $900000 Dr
Bonds Payable $900000 Cr
November 1
Interest Expense $31500 Dr
Cash $31500 Cr
Dec 31
Interest Expense $10500 Dr
Interest Payable $10500 Cr
Explanation:
May 1
The bonds are issued at face value which means the company has received full amount of face value which is $900000. So, we debit cash by $900000 and credit bonds payable by the same amount.
Nov 1
The bonds pay interest semi annually and the amount of semi annual interest is,
Semi annual interest = 900000 * 0.07 * 6/12 = $31500
So, when this interest is paid, interest expense is recorded by $31500 as debit and cash is credited by same amount.
Dec 31
Following the accrual basis of accounting, the interest on bond that relates to November and December of the current year will be recorded as a liability and as an expense for this year. Thus, the amount of the interest will be,
Interest accrued - two months = 900000 * 0.07 * 2/12 = 10500