1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Westkost [7]
2 years ago
13

At January 1, Year 1, under its restricted stock unit (RSU) plan, Label Corporation grants RSUs representing 10,000 of its $1 pa

r common shares to executives. The shares are subject to forfeiture if employment is terminated within a five-year vesting period. Shares have a current market price of $10 per share and their average market price during Year 1 was $20 per share. What is the number of shares that will be added to the denominator of diluted EPS for Year 1?
Business
1 answer:
slamgirl [31]2 years ago
4 0

Answer:

The number of shares that will be added to the denominator of diluted EPS for Year 1 is 6,000 shares

Explanation:

For computing the added shares, first we have to compute per year expenses, than repurchased shares, afterwards, final amount will be come

Per year expenses = (Number of shares × price per share) ÷ (Vesting period)

= (10,000 shares × $10) ÷ (5 years)

= $20,000

The remaining expenses  after one year would be equal to

= Total expenses - annual expenses

= $100,000 - $20,000

= $80,000

Now the repurchased shares would be

= (Remaining expenses) ÷ (average market price)

= ($80,000) ÷ ($20)

= 4,000 shares

So, the diluted shares would be

= 10,000 shares - 4,000 shares

= 6,000 shares

You might be interested in
The Roberts family just received news from Jo-Anne Roberts' employer that she was receiving a prestigious promotion to Corporate
vazorg [7]

Answer:

Of course Jo-Anne Roberts can keep the apartment.

Explanation:

Jo-Anne and the previous owner of the apartment had a valid contract by which Jo-Anne was to pay $3.7 million for the apartment. She has already partially completed her performance on the contract, so the seller must perform his part of the contract.

8 0
3 years ago
You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-fre
olga nikolaevna [1]

Answer:

1.

Required rate = risk free rate + beta (market rate – risk free rate)

.12 = 0.0525 + 1.25(X – 0.0525)

1.25X – 0.065625 = .12 – 0.0525

1.25X = 0.0675 + 0.065625

X = .1333125/1.25

 = 0.1065

Marker risk premium = market rate – risk free rate

  = .1065 – 0.0525

   = 0.054 (A)

2.

Beta of portfolio = (5000000/5500000)* 1.25 + (500000/5500000)* 1

= 0.90909* 1.25 + 0.090909* 1

= 1.136 + 0.090909

= 1.2273

3.

Required rate = risk free rate + beta (market rate – risk free rate)

= 0.0525 + 1.2273* 0.054

= 0.0525 + 0.06627

= .11877 or 11.88%

7 0
2 years ago
A target income refers to: ?a. income at the break-even point.?b. income from the most recent period.?c. income planned for a fu
Shkiper50 [21]
The target income refers to the income planned for the future. The answer is letter C. This type of income is expected by the management at a given specified accounting period. This now would direct the key functions of the management in relation to the action that it will do to achieve the certain income. 
5 0
3 years ago
In a process costing system, the number of units started and completed for a period is equal to: Multiple Choice Units transferr
riadik2000 [5.3K]

Answer:

Units transferred out less units in beginning work in process.

Explanation:

A process costing system is generally used when similar or identical products are mass produced.

To determine the total number of units transferred out = beginning work in process + units started and transferred out - ending work in process

To determine the amount of units started and completed = total units transferred out - beginning work in process

6 0
3 years ago
Real estate is a great investment for everyone, particularly since the money is more liquid than common stocks. true or false
Musya8 [376]
<span>this assumption is false. Liquidity of money refers to the ease with which the owner of an asset can convert it into cash. it is easier to convert common stocks into cash rather than attempt to raise cash from sale or mortgage of real estate assets.</span>
4 0
2 years ago
Read 2 more answers
Other questions:
  • Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that
    7·1 answer
  • ________________________ diagnose, replace, maintain, identify faults with, and repair electrical wiring and computer-based equi
    10·1 answer
  • Sam believes in rewarding his employees for their hard work , he is acting as a
    12·1 answer
  • Who played the character of harry potter in movie? Daniel Red Cliff.
    13·2 answers
  • A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall
    10·1 answer
  • Mark is approaching the implementation phase of the new asset management system (AMS). To test the system's viability and work o
    6·1 answer
  • Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i
    8·1 answer
  • Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi
    10·1 answer
  • Tirri Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$ 7.05 Direct labor$ 4.20
    6·1 answer
  • Irshad's company requires every employee to participate in two half-day harassment training workshops. what ethical responsibili
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!