1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvasek [131]
3 years ago
7

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

han December 31, Year 3, and expire on January 1, Year 7. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What is the amount of compensation expense for Year 1?
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

You might be interested in
A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
Tamiku [17]

Answer:

A. Product A, because it has less certain demand.

Explanation:

According to the statement, the product X (A) is the one with the highest proportion of standard deviation, that is, it has a more uncertain demand. Taking into account this condition, it is expected that the number of optimal products will be greater because it has an average and critical relationship. For this reason, it is expected that the news seller will lean towards the first product, since it will generate higher income as explained at the beginning.

5 0
3 years ago
Read 2 more answers
Slimline and Distributor signed a contract providing that Distributor would use reasonable efforts to promote and sell Slimline’
Sveta_85 [38]

Answer: In this case,<em> </em><em><u>Slimline would win the case</u></em> because <u><em>Distributor's conduct and less inclination towards the product is breach of the contract.</em></u> Therefore Slimline sued Distributor, alleging a violation of the agreement.

Hence, in this case Slimline is more likely to win the case as it was asked of the distributor to use reasonable efforts to promote and sell Slimline’s diet drink.

3 0
3 years ago
What does it mean to own an individual stock ?
valentina_108 [34]

Answer:

that being one of the owners of the business

Explanation:

7 0
3 years ago
The managers of Presto Pizza, a popular pizzeria in Concord, California, have been encouraging senior citizens to order takeout
zysi [14]

Answer:

Market Development

Explanation:

The company has not change their product, which they want to sell their ultimate buyer. Instead they only wish to focus on a single market segment. In this case that market segment consists of senior citizens.

Moreover, the strategy requires to persuade the non buyer (senior citizens) to buy the product by providing them  services (in this case free express delivery) which would encourage them to make the decision of buying pizza from Presto Pizza.

6 0
3 years ago
Why is there scarcity even in an affluent country like the united states?.
Law Incorporation [45]

Answer:

THERE ARE SCARCITY EVEN IN AN AFFLUENT COUNTRY LIKE THE UNITED STATES BECAUSE WANTS ARE LIMITED BUT NEEDS ARE UNLIMITED. SOME PEOPLE ARE POOR WHILE OTHERS ARE WEALTHY

7 0
2 years ago
Other questions:
  • Morrow Corp. has an EBIT of $925,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the c
    7·1 answer
  • A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later ti
    12·1 answer
  • Wilt's has earnings per share of $3.98 and dividends per share of $1.35. What is the firm's sustainable rate of growth if its re
    6·1 answer
  • A one-brand-name strategy should be adopted when the name cannot be pronounced in the local language, when the brand name is own
    13·1 answer
  • Write 15 sentences paragraph on yur favorite book​,film or documentary
    6·2 answers
  • Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wa
    14·1 answer
  • Jeremy operates his own small business, but he doesn't want to be bothered with accounting information. He tells his friends, "A
    13·1 answer
  • What is an appropriate budgeting question
    8·1 answer
  • Which of the following is an outcome of the General Agreement on Tariffs and Trades​ (GATT) and created global rules of trade be
    11·1 answer
  • The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!