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Andru [333]
3 years ago
10

The board of directors of UT Wireless, Inc. is considering two compensation plans for the CEO of the company. The first would pa

y the CEO a salary of $300,000 for the upcoming year. The second would pay the CEO a salary of $150,000 and provide the CEO with a stock option to buy 100,000 shares of stock for $11 per share. The current price per share of UT Wireless, Inc. stock is $9 per share. The stock option expires at the end of the year. Why might shareholders prefer the second payment plan? As part of your answer, calculate the break-even point for the CEO to obtain the same compensation under option two as he or she would under option one.
Business
1 answer:
Anna71 [15]3 years ago
8 0

Answer:

solving for the dollar

:amount:

$150,000 = 100,000 shares * ($x-$11)X = $12.50 meaning, the market price per share must be $12.50 in order to earn $150,000 which is the amount needed to break even with option #1.Therefore, stockholders would probably prefer Action#2 over Option #1 because theCEO has an incentive to operate the company in a manner which would successfully raise the market price per share from $9.00 to $12.50 in order to earn $300,000. Under Option #1, the CEO earns $300,000 regardless if the market price per share goes up or down.

2.Are ethics critical to the CEO's goal of maximizing shareholder's wealth? Is establishing corporate ethics policies and requiring employee compliance enough to ensure ethical behavior by employees?

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Micro, Inc., started the year with net fixed assets of $75,300. At the end of the year, there was $96,700 in the same account, a
Pie

Answer:

$158,730

Explanation:

Mario incoporation started the year with a net fixed assets of $75,300

At the end of the year the net fixed assets was $96,700

The depreciation expense is $13,270

Therefore the company's net capital spending for the year can be calculated as follows

= $96,700+$75,300-$13,270

= $172,000 - $13,270

= $158,730

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6 0
3 years ago
The following production data were taken from the records of the Finishing Department for July:Inventory in process, June 1, 30%
zepelin [54]

Answer:

Conversion Cost Equivalent units FIFO           39, 125

Explanation:

Beginning WIP           5,000 30% completed

transferred units       39,500

ending WIP                 4,500  25% completed

<u>The equivalent units will be:</u>

the transferred units

- complete portion for the beginning WIP

+ complete portion of the ending WIP

transferred out                      39,500

work in previous period

5,000 x 30% =                         (1,500)

worked but not complete

4,500 x 25% =                        <u>  1, 125 </u>  

Equivalent units FIFO           39, 125

5 0
4 years ago
Which sentence best describes how a low supply of apples would affect their cost?
blagie [28]
I think it's A.
If supply increases, cost decreases.
If supply decreases, cost increases.


I hope it helped you!
7 0
3 years ago
Read 2 more answers
The following balances were taken from the general ledger of Doogie Corporation as of December 31. All balances are normal. Cash
SCORPION-xisa [38]

Answer:

The total debit in the trial balance gives $72400,same as the total credits

The trial balance is prepared just before the preparation of financial statements such statement of profit or loss ,statement of financial position(balance sheet) as well as cash flow statement.

Find attached spreadsheet containing the trial balance prepared.

Explanation:

The trial validates the arithmetical accuracy of postings done in the ledger accounts.

To prepare the trial balance,balances extracted from the ledgers are required.The rule is that assets,expenses and drawings are debited to trial balance why income,capital and liabilities are credited

Download xlsx
5 0
3 years ago
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why is accurate "self-classification" of items and equipment involved in a research activity, crucial to export compliance?
vovikov84 [41]

Self-classification allows me to determine if the items or technologies involved in my research are listed on either the USML or CCL, and I cannot comply with export controls until I determined which requirements apply to the research activity.

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  • System-based technologies make up society's technologies.
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<h3>What role does technology play?</h3>
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6 0
1 year ago
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