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timofeeve [1]
3 years ago
9

On January 1, 2018, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no

sooner than December 31, 2020, and expire on January 1, 2021. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. The market price of Olympic’s stock was as follows:_________
Business
1 answer:
deff fn [24]3 years ago
3 0

Answer:

The additional information for this question is:

January 1, 2016 $14

December 31, 2016 15

What amount should Olympic recognize as compensation expense for 2016?

The correct answer is $50.000

Explanation:

To find this figure, we take as a reference the price of the fair value of the options that is $ 5 on the grant date, multiplied by the options on the shares totaling $ 30,000. Then, it must be divided between the award period that according to the problem is 3 years (2018-2021). This operation results in a total of $ 50,000 that should be recognized as compensation.

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__________ is the norm for approximately 90 percent of the world's population.
natulia [17]
<span>Parent-infant co-sleeping is this norm. Some people believe that doing this creates a stronger bond between the parents and the infant. It also is said to make nursing easier. Some believe that is makes it more difficult to get an infant to sleep by themselves.</span>
8 0
4 years ago
Mary Willis is the advertising manager for Concord Shoe Store. She is currently working on a major promotional campaign. Her ide
spin [16.1K]

Answer:

Current break even units = $17,125

New break even point in units = $21,200

Explanation:

The computation of current break-even point in units and comparison with break-even point in units is shown below:-

Current break even units = Fixed cost ÷ Contribution margin per unit

= $411,000 ÷ ($60 - $36)

= $411,000 ÷ $24

= $17,125

New break even point in units =  Fixed cost ÷ Contribution margin per unit

= ($411,000 + $34,200) ÷ ($57 - $36)

= $445,200 ÷ $21

= $21,200

8 0
3 years ago
Which of the following is not a correct way of calculating a liquidity ratio?
aleksley [76]

Option C -Operating Cash Flow = Current Liabilities / Operating Cash Flow s not a correct way of calculating a liquidity ratio.

Liquidity ratios are a measure of a company's ability to settle its short-term payments. A company has the ability to quickly exchange its revenues and is using them to pay his obligations is dictated by its liquidity ratios. The potential to pay back debts and keep engaged on installments is simpler the better the ratio. Since this can vary by industry, and current ratio of 1.0 usually signals that a group's debt do not exceeding its liquid assets. In enterprises in which there is a quicker product changeover and/or shorter payment cycles, ratings below 1.0 may be acceptable.

Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability.

Learn more about Liquidity ratios here:

brainly.com/question/15395374

#SPJ4

3 0
1 year ago
What is the difference between a shortage and scarcity? A shortage can be temporary or long-term, but scarcity always exists. A
Alika [10]

Answer:

A shortage can be temporary or long-term, but scarcity always exists.

Explanation:

Scarcity is a basic concept in economics which explains that human wants are unlimited and thus termed insatiable as the resources required to meet those needs are in limited supply.

As such scarcity as a concept has always been in existence and will always b. Shortage on the other hand is a limited supply of an item which may be in the short term or in the long run. While a shortage may be dealt with in time, scarcity will always be in existence.

8 0
4 years ago
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $47 a share at whic
Feliz [49]

Answer:

56.67%

Explanation:

Purchase cost = 30 dollars

Margin x price = 0.60x30 = $18

30-18 = $12

Profit = $47 - $30 - 0.07(12)

= 16.16

Percentage earned = (16.16 /18) * 100

= 89.78%

Profit from the trade

= 47-30

= 17

Percentage earned = 17/30 * 100

= 56.67%

The return would have been 56 67% if the investor had not done this.

5 0
3 years ago
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