Answer:
$1,000,000
Explanation:
Gallagher Corporation
Stock option × Option estimated fair value /Numbers of years
Stock option $400,000
Option estimated fair value $10
Numbers of years 4
Hence:
($400,000 × $10) / 4 years
=$4,000,000/4years
= $1,000,000
Therefore pretax compensation expense for year 1 will be $1,000,000
Answer:
B. early followers
Explanation:
Based on the information provided within the question it can be said that in this scenario Mantel and Adventura would be considered early followers. Early Followers or better known as First Followers, refers to the company or companies that enter the market shortly after the first company has already entered into that market. They do this to see the barriers that the first company has already overcome and are able to do it easier.
No it does not get a period after the abbreviation.
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
Answer:
(D) George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100.
Explanation:
Transaction for the event
Dr. Equipment (Asset) 9800
Cr. George (Capital A/c) 6700
Cr. Ben (Capital A/c) 3100
So.
George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100 on the basis of their contribution in the purchase of equipment. So option D is true based on this event.