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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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You are writing a recommendation report on which vendor of audiovisual services to hire for your company's annual conference. Th
amm1812

Answer:

I suggest you delay your choice until you learn more of Zenith's current management

Explanation:

The management is just a position that doesn't carry the same character. Every manager carries different values and principles and one person might be satisfactory to you while another might not be. The new management may have some characters which might be off-putting to you and might ruin the company's conference. Best to go with what you know than what you don't.

4 0
3 years ago
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making
Gelneren [198K]

Answer: (a) 6%

(b) 10.61%

(c) Yes

Explanation:

a) After tax cost of debt = Yield (1- tax)

= 8 ( 1 - 0.25)

 = 8 × 0.75

 = 6%

b) cost\ of\ preferred\ stock =\frac{dividend}{price-flotation\ cost}

cost\ of\ preferred\ stock =\frac{5.20}{52-3}

cost\ of\ preferred\ stock =\frac{5.20}{49}

= 0.1061 or 10.61%

Note:  Cost of preferred stock is not tax deductible

c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]

8 0
3 years ago
The potentially large amount of taxes due on sale of commercial property has caused investors and policy makers to seek ways to
lukranit [14]

Answer:

C. Like-Kind exchange

Explanation:

Like kind exchange is a type of deferred tax transactions that occurs when the disposal of an asset and the acquisition of another similar asset without generating a capital gains tax liability from the sale of the first asset. In like kind exchange, an individual can defer paying taxes upon the sale of a property by swapping your property for similar property owned by someone else. An investor is able to swap one eligible property for the other with the sole aim of avoiding or deferring taxes.

7 0
2 years ago
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Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her custo
lora16 [44]

Answer:

observation

Explanation:

Based on the information provided within the question it can be said that in this scenario Bianca will most likely use observation. That is because the best way of gathering this information is to observe each customer as they walk out of the store and see which store they go into next. This information can be written down and reviewed later.

7 0
3 years ago
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Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposi
tensa zangetsu [6.8K]

Answer:

The reason the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas is:

it wants to ensure that producers are protected from foreign competition.

Explanation:

Producers face foreign competitive threats.  Consumers do not face such competition.  Therefore, the government will often consider the producers' interests more than the consumers' interests when imposing trade tariffs and quotas.  If local industries are not protected from their foreign competitors, the unemployment rate will increase and the economy will be flooded with cheap and low quality goods from other countries.  In that way, the US will be subsidizing the foreign producers indirectly.

4 0
2 years ago
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