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Elena-2011 [213]
3 years ago
15

Suppose your employer offers you a choice between a $ 4 comma 600 bonus and 200 shares of the company stock. Whichever one you c

hoose will be awarded today. The stock is currently trading for $ 64 per share. Ignore transaction costs. a. Suppose that if you receive the stock​ bonus, you are free to trade it. Which form of the bonus should you​ choose? What is its​ value? b. Suppose that if you receive the stock​ bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus​ now? What will your decision depend​ on?
Business
1 answer:
Virty [35]3 years ago
6 0

Answer:

a. Suppose that if you receive the stock​ bonus, you are free to trade it. Which form of the bonus should you​ choose? What is its​ value?

I would choose the stock bonus because the current market price = 200 x $64 = $12,800 which is much higher than $4,600 (cash bonus)

b. Suppose that if you receive the stock​ bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus​ now? What will your decision depend​ on?

Even if you are required to hold the stock for one year, the price difference with the cash bonus is too great = ($12,800 - $4,600) / $4,600 = 178% higher. Since you are employed by the company, you should know if the company is doing well or not, and the probable future stock price.

Only if something catastrophic happened to the company would make the cash bonus more attractive.

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Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cas
il63 [147K]

Answer:

The journals entry to record depreciation on the equipment for 2016 will be:

Debit Depreciation expense $14,000

Credit Accumulated depreciation $14,000

<em>(To record depreciation expense for Year 2016)</em>

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.

The change in the estimate in Year 2017 will not affect the depreciation expense for 2016 based on the previous parameters,

6 0
3 years ago
Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (doll
Leviafan [203]

The answer & explanation for this question is given in the attachment below.

5 0
3 years ago
Rachel is saving her entertainment money for a summer trip to Europe, but she wants to spend time with her friends this Saturday
Vanyuwa [196]

Answer:

I'd say B,

Explanation:

becuase you dont need any money to hike and she wants to save it.

3 0
3 years ago
Q: In about 200 words, write an essay analyzing the STEEPLE Module .
Kaylis [27]

The STEEPLE model is a very complete model that can be used to analyze the factors that affect a specific situation.

<h3>What is the STEEPLE model?</h3>

This is an analysis model in which each letter represents a factor to be analyzed:

  • Social
  • Technology
  • Economic
  • Environmental
  • Political
  • Legal
  • Ethical

<h3>What is an example of this model?</h3>

Let's analyze a war between two countries:

  • Social: The families are negatively affected by the war.
  • Technology: Weapons and other technologies are used as part of the war.
  • Economic: The economy of the countries involved and other nearby countries can be negatively or positively affected.
  • Environmental: There is pollution due to waste derived from weapons.
  • Political: Most wars are the result of political conflicts.
  • Legal: There are specific international rules that regulate wars.
  • Ethical: The use of weapons against a population rises ethical concerns and dilemmas.

Learn more about analysis in: brainly.com/question/5040600

4 0
2 years ago
What legal document transfers the title of real property from one party to another?
aleksley [76]

Answer:

D deed​

Explanation:

Real estate property ownership is recorded and tracked with documents known as the deed or the title deed. The records are in the custody of the County Recorder’s office.  Any transfer of property ownership must be accompanied by a change to the official documents to reflect the new owner. The change in name on the deed documents is what signifies the transfer of ownership.

5 0
2 years ago
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