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ale4655 [162]
3 years ago
14

Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise

price is $35 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $5.50 per option. What would be the total compensation indicated by these options?
Business
1 answer:
harina [27]3 years ago
5 0

Answer:

$5,500,000

Explanation:

Total fair value of the options = Number of shares in the option × Estimated fair value per option = 1,000,000 × $5.50 = $5,500,000

Therefore, the total compensation indicated by these options would be $5,500,000.

You might be interested in
Liu Electronics budgeted sales of $400,000.00 for the month of November and cost of goods sold equal to 65 percent of sales. Beg
Leno4ka [110]

Answer:

Purchases= $252,000

Explanation:

Giving the following information:

Sales= $400,000

Cost of goods sold equal to 65 percent of sales.

Beginning inventory= $80,000

Ending inventory= $72,000

To calculate the purchase required, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= (400,000*0.65) + 72,000 - 80,000

Purchases= $252,000

8 0
3 years ago
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem,
Leni [432]

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

4 0
3 years ago
Which of the following is/are true?
Hatshy [7]

Answer:

If the pure expectations theory is correct, a downward-sloping yield curve indicates that interest rates are expected to decline in the future.

Explanation:

The three theories based on term structure of interest rates includes:

1. Pure Expectation Theory

2. Liquidity Premium Theory

3.Segmented Markets Theory

In Pure Expectations Theory, the term structure shown in the shape of the yield curve is gotten solely by the expectations of interest rates.

According to pure expectations theory, the yield curve has an Upward sloping, if there is an expected increase in rates and expected decrease in rates leads to a downward sloping.

8 0
2 years ago
The total cost of direct materials, direct labor, and factory overhead transferred from the Work-In-Process Inventory account to
sp2606 [1]

Answer:

d. Cost of goods manufactured.

Explanation:

The total costs of direct material, direct labor and factory overhead when transferred from work in process to finished goods - forms the cost of goods manufactured.

Total cost of manufacturing usually also involves half finished products and thus the work in process. Where as when the goods are to be transferred to the finished inventory, these work in process are adjusted and forms the cost of goods manufactured.

Hope that helps.

5 0
3 years ago
Management Team and Organizational Structure
Tomtit [17]

Answer:

Management Team and Organizational Structure

4 0
2 years ago
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