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Savatey [412]
3 years ago
9

On January 1, 2008. Titania, Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the c

ompany�s $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2010, by grantees still in the employ of the company, and expiring December 31, 2014. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $350,000. On April 1, 2009, 2,000 option shares were terminated when the employees resigned from the company. The market value of the common stock was $35 per share on this sale. On March 31, 2010, 12,000option shares were exercised when the market value of the common stock was $40 per share. Prepare journal entries using the fair value method to record issuance of the stock options, termination of the stock options, exercise of the stock options, and changes to compensation expense, for the years ended December 31, 2008, 2009, and 2010.
Business
1 answer:
Kryger [21]3 years ago
7 0

Answer:

what do you want me to answer ?

Explanation:

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I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is
Nitella [24]

Answer:

$15,000

Explanation:

Value of a perpetuality = cash flow / r

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

4 + 0 (10 - 4) = 4

1,000/ 0.04 = 25,000

4 + 1 (10 - 4) = 10

1000 / 0.1 = 10,000

25,000 - 10,000 = 15,000

8 0
3 years ago
In which stage of the product life cycle would a firm most likely use price reductions and reminder advertising to encourage cus
skad [1K]

In maturity stage of the product life cycle a firm would most likely use price reductions and reminder advertising.

<h3>What is product life cycle?</h3>

A product life cycle can be regarded as length of time from introduction of a product to consumers till the the consumer get the product.

This comes in stages, one of the this stage is

maturity stage of product life cycle where discount is used for consumers.

Learn more about product life cycle at;

brainly.com/question/14567370

7 0
2 years ago
11. Using a hypothetical but specific example, explain how the perceived value of an item may differ from person to person.
notka56 [123]

Answer:

Aperson with better financial ability would have a less perceived value than someone with lesser financial ability. For example, a celebrity could buy a piece of clothing (jeans,shirts, jackets, etc.) for $100 and it would be nothing to them. But to someone working a regular 9 to 5 job, that would be an excessive amount of money to spend on one piece of clothing.

Background image

3 0
3 years ago
Dmitri lives in Detroit and runs a business that sells guitars. In an average year, he receives $701,000 from selling guitars. O
Black_prince [1.1K]

Answer:

EXPLICIT COST

The wholesale cost for the guitars that Dmitri pays the manufacturer

The wages and utility bills that Dmitri pays

IMPLICIT COST

The rental income Dmitri could receive if he chose to rent out his showroom

The salary Dmitri could earn if he worked as a financial advisor

Explanation:

Explicit cost: those which are actually incurred this means it represent accrued expenses or actual cash outlay.

Implicit cost: refers to the opportunity cost of a factor wasted opprtunity for weing deploy in the current project. These do not represent actual expenses but potential use of the factors

5 0
4 years ago
Will the business be legal and not against any existing or foreseeable government regulation
bagirrra123 [75]

Answer:

A business will only be legal and not against any existing or foreseeable government regulation if there are documents proving that the business is legally registered, with the type of business and other details fully disclosed by the promoters during the formation and documentation stages.

Explanation:

The main document for incorporating a company in the United States is the Articles of Incorporation.  The document specifies  the primary purpose of the business, its location ( and state of incorporation), and the shareholdings.

7 0
3 years ago
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