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kolbaska11 [484]
4 years ago
8

Under its executive stock option plan, N Corporation granted options on January 1, 2018, that permit executives to purchase 16.0

million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $16 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? (Round your answer to 1 decimal place.)
Business
1 answer:
RUDIKE [14]4 years ago
7 0

Answer:

$16 million each year  

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the Effect on Earnings in the Year After the Option are Granted by using following formula:-

Award’s Fair Value = Purchase Granted Option × Fair Value Per Option

=$16 million × $3

=$48 million

N Corporation granted executive stock option plan equally over the 3 years (Jan.1,2018 to Dec.31,2020) vesting date, reducing earning is

= Award’s Fair Value ÷ vesting years

= $48 million ÷ 3 years

= $16 million each year  

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Answer:

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Explanation:

Environmental, Social, and Governance (ESG) is an acronym that stands for Environmental, Social, and Governance. These non-financial aspects are increasingly being used by investors in their analytical process to identify major dangers and growth prospects.

The goal of this research is to use ESG integration to produce new types of competitive advantage, not only ESG ratings. It can't be left exclusively to the investor relations team or the sustainability department since it includes key strategic and operational decisions.

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2 years ago
Which person can be categorized as a discouraged worker? a.Candy Kane worked at Turnips "R" Us until two months ago. She is tryi
Lina20 [59]

Answer:

The correct answer is letter "D": Andy Friese was formerly employed at Reliable Auto. He has been out of work for six months, and he gave up looking for work over a month ago.

Explanation:

A discouraged worker can be defined as an individual who is not in the labor force, who is willing and capable to join it but has been unemployed since the last time that person had a job for more than 12 months and who has stopped looking for a job somewhere in the past 4 weeks.  

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5 0
3 years ago
The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this infor
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Answer:

has been overapplied.

Explanation:

The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).

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7 0
3 years ago
Read 2 more answers
Lucky​ Louie's bank requires a minimum balance at all times of​ $1500 in order to provide free checking services. The bank pays​
charle [14.2K]

Answer:

Net benefit $18

Explanation:

<u><em>Saivings from fees:</em></u>

$4 fee x 12 months =    $ 48

Interst 1,500 x 0.005 =  $  7.5

Opportunity cost:

1,500 x 0.025 =      <u>     (  $ 37.5 )    </u>

Net benefit:                    18.00

Fro mthe saving of fees and interest we should subtract the opprtunity cost, which represen the gain from putting the cash in the best interest alternative. This makes a more realistic approach than just the accounting gain.

7 0
4 years ago
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