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Ainat [17]
3 years ago
8

In order to retain certain key executives, Smiley Corporation granted them incentive stock options on December 31, 2017. 150,000

options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2018 $46 per share December 31, 2019 51 per share December 31, 2020 50 per share The options were granted as compensation for executives’ services to be rendered over a two-year period beginning January 1, 2018. The Black-Scholes option pricing model determines total compensation expense to be $1,500,000. What amount of compensation expense should Smiley recognize as a result of this plan for the year ended December 31, 2019 under the fair value method?

Business
1 answer:
Mice21 [21]3 years ago
3 0

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

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During 2021, a company sells 21 units of inventory. The company has the following inventory purchase transactions for 2021: Date
Ugo [173]

Answer:

Cost of goods sold = 1,116

Ending inventory = 468

Explanation:

In LIFO (last in first out) method, the goods come in most recently will come out first when it comes to sales transaction. So, 21 units of sales during 2021 includes 12 units purchased at Sep.8 and 9 units of beginning balance:

Cost of goods sold during 2021 = 12 x 54 + 9 x 52 = 1,116.

Ending inventory value for 2021 = 1,584 - 1,116 = 468.

5 0
3 years ago
Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 8 percent. You also
maks197457 [2]

Answer: $3.46

Explanation:

Given the following :

Current share price (P0) = $90 per share

Required return on stock= 8%

total return on the stock is evenly divided between a capital gains yield and a dividend yield ;

Therefore, Required return on stock= 8% ;

4% capital gain yield + 4% Dividend yield = 8%

Growth rate = 4% = 4/ 100 = 0.04

D1 = D0(1 + g)

D1 = value of next year's Dividend

D0 = current Dividend yield

g = Constant growth rate

D1 = current stock price * g

D1 = 90 * 0.04 = 3.6

D1 = D0(1 + g)

D0 = D1 / (1+g)

D0 = 3.6 / (1+ 0.04)

D0 = 3.6 / 1.04

D0 = $3.46

8 0
3 years ago
What is sadness ??
Scilla [17]

Answer:

sadness is when we are alone and who was break up with and who didn't care and when we are weak

8 0
3 years ago
4. List three reasons for dividing a grill into zones of varying heat intensity.
SCORPION-xisa [38]

In the United States broiling is a top-down heat whereas grilling is a bottom-up heat. Grilling is anything where heat is aimed at food, top, side, or down. Baking in the UK is the same as in the U.S. (convective or ambient temperature equivalent cooking.)

Hey only know #6 so i hope this helps

3 0
3 years ago
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use
Jobisdone [24]

Answer:

$17,167

Explanation:

<em>The first step is to calculate amount of cash that would be charged</em>

<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>

Present value is = 2,221

<em>Then</em>

<em>The present value of the payment options is =</em>

<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>

<em>$520 * 22.396 + $10,000 * 0.5521</em>

<em>$11646 + $ 5521</em>

<em>$17,167</em>

<em>Therefore the amount of cash the car dealer would charge is $17,167</em>

7 0
3 years ago
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