Answer: .B. Using the fair value method
Explanation: Executive stock options (ESO) are documents that permits certain number of shares in a company's stock to be purchased at an approved strike price within a given time. This is a type of stock option is offered to company's executive and members of its management as a form of incentive and reward system.
The incentive is not made compulsory for company executive to use, but the company must respect the contract if a company's executive decides to use it.
Forms of Executive Stock Options.
• Non qualified stock Option: This is a type of executive stock option that does not allow for long term capital tax rate.
•Incentive stock option: A type of ESO in which capital gain tax rates are allowed but only under certain rules and conditions which must be followed and adhered to.
Answer:
$42,950
Explanation:
Data and Calculations
Revenue $129,300
Less variable costs ($72,400)
Less fixed costs ($18,900)
add depreciation $4,950
Operating Cash flow $42,950
Thus
The annual operating cash flow $42,950.
<span>A rivalry based on the special interests of different areas is called sectionalism. Each rival has an region or section they possess and they are only interested in scenarios or situations concerning them. The rivalry comes from the fact that both parties may have opposite views on special interests or have had some sort of conflict in the past or present.</span>
Answer:
(a) 9.9%
(b) 10.09%
The further explanation is given below.
Explanation:
The given values are:
Coupon payment
= $99
Price
= $1,000
(a)
The Yield to maturity (YTM) will be:
=
where,
C = Coupon payment
P = Price
n = years to maturity
F = Face value
On putting the estimated values is the above formula, we get
⇒
⇒
⇒ %
(b)
Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.
=
Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:
Rate (r) Total proceeds Realized YTM ()
7.9% 1205.8 9.8%
9.9% 1207.8 9.9%
11.9% 1209.8 9.99%
Now,
Overall proceeds realized YTM:
=
=
=
=
=
=
= %
Formulating and implementing goals and initiatives from the company's top management is what the strategic management mainly involves at. It is mostly based on the consideration of resources in which the organization competes. I hope my answer has come to your help. God bless and have a nice day ahead!<span>
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