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
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  

You might be interested in
Let’s assume that each person in the United States consumes an average of 39 gallons of soft drinks (non-diet) at an average pri
icang [17]

Answer:

Instrucitons are listed below.

Explanation:

Giving the following information:

Let’s assume that each person in the United States consumes an average of 39 gallons of soft drinks (non-diet) at an average price of $2.00 per gallon and that the U.S. population is 295 million. At a price of $1.50 per gallon, each consumer would demand 49 gallons of soft drinks.

Price= 2

Demand= 295*39= 11,505 million

Price= 1.5

Demand= 295*49= 14,455 million

8 0
3 years ago
Which questions about risk should somone ask before making economic choices
dezoksy [38]
The questions about risk that should someone ask before making economic choices are :
- What problem are most likely to happen ?
- What could go wrong ?
- What problem that could be most damaging ?

Hope this helps
6 0
3 years ago
Each unit of a product requires 5 components. The average number of components is 5.50 due to component failure. Purchasing high
Evgesh-ka [11]

Answer:

correct option is d. $225

Explanation:

given data

product requires  = 5 component

average number of components = 5.50

reduce average number of components = 5 per unit

cost per component = $450

solution

we get here reduction in failure costs per unit due to purchasing that is express as

reduction in failure costs per unit due to purchasing = ( average number of components - product requires ) ×  cost per component   .......................1

put here value and we get

reduction in failure costs per unit due to purchasing = ( 5.50 - 5 ) × $450

reduction in failure costs per unit due to purchasing = $225

so correct option is d. $225

4 0
3 years ago
Suppose country A and country B are trading partners. The imposition of tariffs by country A on goods from country B may not be
Alexxandr [17]

If country A imposes tariffs on goods from country B, it could lead country B to retaliate against country A.

<h3>What happens when countries impose tariffs?</h3>

When a nation imposes tariffs on another nation, it makes goods from that other country more expensive and will therefore limit trade.

The other country might then reply by placing tariffs on the goods of the first country as country B might do here.

Find out more on tariffs at brainly.com/question/1172085.

#SPJ1

3 0
2 years ago
Darius, Inc. has the following income statement (in millions): DARIUS, INC. Income Statement For the Year Ended December 31, 201
natulia [17]

Answer:

40%

Explanation:

Calculation to determine what percentage is assigned to Cost of Goods Sold

Using this formula

Cost of Goods Sold percentage=

Cost of Goods Sold /Net Sales

Let plug in the formula

Cost of Goods Sold percentage=$120/$300*100

Cost of Goods Sold percentage=0.40*100

Cost of Goods Sold percentage=40%

Therefore the percentage assigned to Cost of Goods Sold is 40%

4 0
3 years ago
Other questions:
  • C.S. Cullumber Company had the following transactions involving notes payable. July 1, 2022 Borrows $74,000 from First National
    7·1 answer
  • The company that you are working for has a highly available architecture consisting of an elastic load balancer and several EC2
    10·1 answer
  • Currency is?
    10·1 answer
  • Walter Waterson owns a lawn irrigation system business. He manages the installations and maintenance of these systems. Several c
    9·1 answer
  • Sarah and Bill were recently hired at the local manufacturing plant. Before being hired, they were interviewed by the team membe
    12·1 answer
  • What do you want to be when you a grow up? I want to be a model or a fitness model or a boxer or a professional tahitian dancer
    14·1 answer
  • George Jefferson established a trust fund that will provide $200,500 per year in scholarships. The trust fund earns an annual re
    6·1 answer
  • Henry's savings account has an APR of 3.65%
    5·1 answer
  • You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent interest compounded monthly. Re
    7·1 answer
  • Differences between productive and service orientated profession​
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!