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8090 [49]
3 years ago
14

On December 31, 2017, Houser Company granted some of its executives options to purchase 150,000 shares of the company's $50 par

common stock at an option price of $60 per share. The Black-Scholes option pricing model determines total compensation expense to be $3,000,000. The options become exercisable on January 1, 2018, and represent compensation for executives' past and future services over a three-year period beginning January 1, 2018. What is the impact on Houser's total stockholders' equity for the year ended December 31, 2017, as a result of this transaction under the fair value method
Business
1 answer:
storchak [24]3 years ago
3 0

Answer: $1,000,000 decrease

Explanation:

From the information above, the Black-Scholes option pricing model determines that the total compensation expense to be $3,000,000 and the option was for a 3 year period.

The impact on Houser's total stockholders' equity for year ended December 31, 2017, based on this transaction under the fair value method will be:

Total compensation expense/time period= $3,000,000/3= $1,000,000

decrease in net income because of compensation expense.

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If actions of the Nepalese government caused a shortage of domestic currency, then the government fixed exchange rate would be
solniwko [45]

Answer:

D) below the market equilibrium and rupee per dollars will tend to rise.

Explanation:

In the case when the nepalese government taken an action that result in shortage of the domestic currency so the government exchange rate i.e. fixed would be below the market equilibrium and the dollars per rupee would increase as if there is a shortage so the government fixed the currency i.e. below the equilibrium due to which the currency would become stronger

Hence, the correct option is d.

6 0
3 years ago
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organ
Dmitriy789 [7]

Answer:

C

Explanation:

May be held liable on the basis of negligent hiring.

Negligent hiring is a clame (legal) made againts an employer, argues that an employer should have known the background of the employee

5 0
4 years ago
True And False
trasher [3.6K]

Answer:

The answer is true we need to know of any types of sources.

Explanation:

APPLYOURKNOWLEDGE

8 0
3 years ago
The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The fir
stich3 [128]

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

6 0
3 years ago
On January 30, 2019, prior to the issuance of its financial statements for the year ended December 31, 2018, Crane declared a 10
Sati [7]

Answer:

See below.

Explanation:

Assuming an initial outstanding common shares of 100,000

100% stock dividend means that another 100,000 shares have been issued,

Total outstanding shares then are = 100,000+100,000 = 200,000

Earnings per share = Net Income / Total shares

EPS = 1,130,000 / 200,000

EPS = $5.65/share

You can compute this by inputting any number of shares and increasing the total number by a 100%.

Hope that helps.

4 0
4 years ago
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