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Charra [1.4K]
3 years ago
11

On January 1, 2021, Red Inc. issued stock options for 210,000 shares to a division manager. The options have an estimated fair v

alue of $4 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2021
Business
1 answer:
dimaraw [331]3 years ago
8 0

Answer:

$280,000

Explanation:

Fair value = $4

Options granted = 210,000 shares

Total compensation = Fair value*Options granted

Total compensation = $4 * 210,000

Total compensation = $840,000

Number of years = 3

Compensation per year = Total compensation / Number of years

Compensation per year = $840,000 / 3

Compensation per year = $280,000

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Just easily subtract like seriously so simple
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3 years ago
The foreign exchange market
AnnyKZ [126]

Answer:

D) all of the above

Explanation:

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3 years ago
What is the different between capital and revenue expenditure​
Naddik [55]

Answer:

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Explanation:)

8 0
3 years ago
In a business context, legal counsel is not only a primary and important source of information and advice but is also solely res
maria [59]

Answer:

False

Explanation:

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For example: the legal counsel is not solely responsible for making decisions to resolve dispute, but the legal counsel is part of the party that resolves dispute within business organization without going to court.

4 0
3 years ago
Shares of IBM are currently trading at $152.11. IBM call options with three weeks until expiration and a strike price of 155 are
sertanlavr [38]

Answer:

Receive $2.98 today .If the shares of IBM are above 155 at exportation,obligated to deliver shares at $155(sell). No further action if shares are below $155.

Explanation:

According to the given situation, the call option is sold i.e. there is an obligation to sell

And in case when price is high then the strike price, the buyer of call has right to buy at $155 that represents lesser price due to which there is an obligation to sell the shares at $155 .

Therefore the options would be exercised but it is against with your favor  

8 0
3 years ago
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