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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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ZanzabumX [31]

Answer:

Current stock price = $1.040

Explanation:

We know,

Current preferred stock price = Preferred dividend ÷ Expected rate of return

Given,

Expected rate of return = 4.69%

Preferred dividend = $4.88

Current preferred stock price = ?

Putting the values into the formula, we can get

Current preferred stock price = $4.88 ÷ 4.69%

Or,Current preferred stock price = $1.040.

Therefore,  the current preferred stock price is $1.040.

5 0
3 years ago
In a management trainee program, 80% of the trainees are female, while 20% are male. ninety percent of the females attended coll
Andre45 [30]
<span>Step 1:
Females who attend college = 0.80 * 0.90 = 0.72

 Step 2:
 Females who did not attend college = 0.80 * 0.10 = 0.08

  Step 3
Male who attend College 0.20 * 0.78 = 0.156

Step 4
Male who did not attend college 0.20 * 0.22 = 0.044 So 0.044(4.4%) is the probability that the person selected is a male who did not attend college</span>
4 0
4 years ago
The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________.A) protect the
erma4kov [3.2K]

Answer:

Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.

Explanation:

Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.

7 0
3 years ago
The owner’s equity section of the balance sheet for the Blue Top Taxi Company shows that
Paha777 [63]

Answer:

Answer//// Tom Cotton owes Sams garage;//////////////////

Explanation:

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3 years ago
Barry’s expectation that employees will complete his requests immediately is typical of —— leaders.
goldenfox [79]

Answer: Commanding leaders

Explanation: The commanding leader is a type of leadership where the leader is someone who is very controlling. These leaders are tough and direct people, they are those who take charge of situations regardless of what others may think.

In the commanding leadership style, the leader is someone very focused and does whatever it takes to get the desired results. They are often intimidating and expect their employees to always do what they ask.

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3 years ago
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