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patriot [66]
3 years ago
8

On the grant date, January 1st, 2015, the stock was quoted on the stock exchange at $63 per share. The fair value of the options

on the grant date was estimated at $15 per option. The amounts of compensation expense ABC should recognize with respect to the options during 2015, 2016, and 2017 are:
Business
1 answer:
Dafna11 [192]3 years ago
3 0

Answer:

2015 $31,500

2016 $31,500

2017 $31,500

Explanation:

Number of Options in total × Fair Value of the Stock per option

Where

Number of Options in total = 63

Fair Value of the Stock per option =15

Hence:

(63*100) ×$15

=$6,300 ×$15

= $ 94,500

Compensation expense will be:

2015, 2016, and 2017 will give us 3 years

= $94,500/3

= $31,500 for 2015, 2016, and 2017

Fair value of the options is said to be evaluated on grant date and expenditure is been recognised in 3 years because the employee will be working for 3 years which is from year 2015 to 2017

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The answer is Conflict as the other be just don’t make any sense.
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3 years ago
The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is
navik [9.2K]

Answer:

C) the syndicate member assumes liability for unsold shares and the selling group member does not.

Explanation:

In the trading of a security, the dealer's spread refers to the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.

Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.

The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.

The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is that the syndicate member assumes liability for unsold shares and the selling group member does not.

4 0
3 years ago
Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling on
ziro4ka [17]

Answer:

Increase by $31,500

Explanation:

Calculation to determine the operating income

First step is to calculate the Total relevant cost

DIFFERENTIAL ANALYSIS

MAKE BUY

Variable cost $144,900 $0

(2,100*$69)

Fixed cost $46,200 $0

(2,100*55*40%)

Purchase cost $0 (2100*76) = $159,600

Total relevant cost $191,100 $159,600

Now let determine the Increase or decrease of the company's operating income

Increase by =($191,100- $159,600)

Increase by = $31,500

Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500

4 0
3 years ago
Stakeholder engagement should include both internal, as well as external, stakeholders and emphasize issues that directly affect
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The statement that, "Stakeholder engagement should include both internal, as well as external, stakeholders and emphasize issues that directly affect corporate strategy" is True.

<h3>What is Stakeholder engagement?</h3>

Stakeholder engagement refers to a type of meeting that all the major players in an industry. Stakeholder engagement is designed to tackle the issues that directly affect the organization.

Stakeholders are expected to make their own input and be aware of any major changes that ought to be carried out in the interest of the organization. Since their funds are involved in the business, they ought to be aware of all important decisions.

Learn more about stakeholder engagement here:

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7 0
1 year ago
KCE Corporation is currently operating at its target capital structure with market values of $140 million of equity and $155 mil
MariettaO [177]

Answer:

Option (a) is correct.

Explanation:

Given that,

Equity = 140 Millions

Debt = 155 Millions

Debt Equity Ratio = Debt ÷ Equity

                             = 155 Millions ÷ 140 Million

                              = 1.11

KCE is financing its new project with 25 Millions

Let the New debt issued by x   and the New equity financed be (25-x) .

Debt Equity Ratio = Debt ÷ Equity

1.11 = (155 + x) ÷ (140 + 25 - x)

1.11 = (155 + x) ÷ (165 - x)  

183.15 - 1.11x = 155 + x

28.15 = 2.11 x

x = 13.34

Option (a) is the most nearest to this answer.

New Debt = 155 + 13.34

                 = 168.34 Millions

New Equity = 140 + 11.66

                    = 151.66 Millions

5 0
3 years ago
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