Answer:
The amount of Compensation expense to Year 1 is $153,333.
Explanation:
Stock options granted 92000
X Fair value on date of grant 5
Total compensation expense 460000
Years 3
Compensation expense per year 1 53333
Therefore, The amount of Compensation expense to Year 1 is $153,333.
Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.
If he sells the shares at 30 per unit, the equation would be:
30*26000=780000
If he lowers the price to 29 per unit and ups the demand by 1k, it would be:
29*27000=783000
The resulting change would net him an additional 3000 dollars, so your answer would be B.
Budget resolutions is the answer
Answer:
True
Explanation:
Strategic planning process is what help identify the objectives of a business and then develop plan to achieving those objectives. It gives direction to management decision while addressing business challenges.
The aim of strategic planning process is to prevent a company from carrying out task without directions because when those controlling business or its owners do not have clear vision, wrong decision may be made hence create problems for the employee regarding their stand in the company.
Strategic planning process includes identifying strategic position, gather information, conduct SWOT analysis, create a strategic plan, execute the strategic plan etc.
