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salantis [7]
3 years ago
10

Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 15 m

illion of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2024, when the market price is $21 per share. By what amount will W's shareholder's equity be increased when the options are exercised
Business
1 answer:
stiv31 [10]3 years ago
5 0

Answer:

$270m

Explanation:

We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows

Increase in equity =  No Options Granted x Exercise price at the date of grant

Increase in equity = 15million x $18  

Increase in equity = $270m

       

You might be interested in
For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. E
il63 [147K]

Depot Max's inventory turnover for the year is 8.3

Given

Cost of goods sold = $56900

Begining Jovenstory = $6540

Ending Inventory = $7250 .

Average inventory = opening inventory + closing inventory  / 2

= $6 540 + $-7250 / 2

Average inventory = $6895

cost of goods old

.: Inventory turnover = cost of goods sold / Average inventory

56900 / 6895

= 8. 252 times

He Depot Max's Inventory 8.3 times (approx ).

Learn more about turnover here: brainly.com/question/25623677

#SPJ4

3 0
2 years ago
As product adopters in the diffusion of innovation, members of the early majority Group of answer choices
Luden [163]

Answer:

The correct answer is letter "B": are deliberate and use many informal social contacts.

Explanation:

Sociologist and Professor E.M. Rogers (1931-2004) proposed The Diffusion of Innovations Theory which is a concept that relates several consumers' factors with the time they take to adopt technological innovation. Those influential factors are individuals' opinions and the rate at which they can interact with the innovation. According to the theory, consumers can be classified into five (5) groups:

  • Innovators: <em>venturesome, higher educated, use multiple information sources. </em>
  • Early adopters:<em> leaders in a social setting, slightly above average education. </em>
  • Early majority:<em> deliberate, many informal social contacts. </em>
  • Late majority:<em> skeptical, below-average social status. </em>
  • Laggards:<em> fear of debt neighbors and friends are information sources.</em>
7 0
3 years ago
Real income can be determined by:
nlexa [21]

Answer:

The answer is D. Deflating nominal income for inflation.

Explanation:

Real income is how much money an individual or entity makes after accounting for inflation.  it is the income of an individual or a nation after adjusting inflation. It is calculated by dividing nominal income by the price level.

Hence we can say real income is determined by Deflating nominal income for inflation

7 0
3 years ago
PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has out
AlladinOne [14]

Answer:

A. 10.14%

Explanation:

1.Market value of PAW common stock:5,000,000*8=$40,000,000

2.Market value of PAW outstanding preferred stock=$10,000,000

3.Market value of PAW bonds outstanding=96,000,000(100,000*1000*96%)

Total Market value(1+2+3)=146,000,000

4.Cost of equity amount on common stock(19%*40,000,000)=7,600,000

5.Cost of preferred stock amount (15%*10,000,000)=$1,500,000

6.After tax cost of Debt amount(9%*66%*96,000,000)=$5,702,400

Total cost amount(4+5+6)=14,802,400

The WACC can be calcualted as: Total cost amount/Total market value

                                                        14,802,400/146,000,000=10.14%

The answer should be A. 10.14%

3 0
3 years ago
A coffee shop buys 2000 bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $12
aleksley [76]

Solution :

The optimal order quantity, EOQ = $\sqrt{\frac{2 \times \text{demand}\times \text{ordering cost}}{\text{holding cost}}}$

EOQ = $\sqrt{\frac{2 \times 2000 \times 12}{3.6}}$

        = 115.47

The expected number of orders = $\frac{\text{demand}}{EOQ}$

                                                      $=\frac{2000}{115.47}$

                                                      = 17.32

The daily demand = demand / number of working days

                               $=\frac{2000}{240}$

                              = 8.33

The time between the orders = EOQ / daily demand

                                                 $=\frac{115.47}{8.33}$

                                                  = 13.86 days

ROP  = ( Daily demand x lead time ) + safety stock

        $=(8.33 \times 8)+10$

         = 76.64

The annual holding cost = $\frac{EOQ}{2} \times \text{holding cost}$

                                         $=\frac{115.47}{2} \times 3.6$

                                         = 207.85

The annual ordering cost = $\frac{\text{demand}}{EOQ} \times \text{ordering cost}$

                                           $=\frac{2000}{115.47} \times 12$

                                           = 207.85

So the total inventory cost = annual holding cost + annual ordering cost

                                            = 207.85 + 207.85

                                            = 415.7

6 0
2 years ago
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