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
Margaret [11]
2 years ago
13

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J

anuary 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.
Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include: __________
Business
1 answer:
jasenka [17]2 years ago
5 0

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

You might be interested in
Tronnes Corporation's net income last year was $1,750,000. The dividend on common stock was $2.60 per share and the dividend on
Montano1993 [528]

Answer:

  • The price-earnings ratio is closest to:

B. 11.54

Explanation:

To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,

which is , $1,750,000 - (100,000*2,5= $250,000) = $1,500,000

Then we calculte the Earning/Share Ratio : $1,500,000/300,000 = 5

Finally with the Market Price of shares, we can calculate the Price Earnings Ratio ; $57,70 / $5 =  11,54

Shares of Common stock outstanding    300.000   780.000  

Shares of Preferred stock outstanding    100.000   250.000  

NET INCOME Available   1.500.000  

The market price    57,70  

Price–Earnings Ratio   11,54  

Earnings/Share Ratio   5,00  

NET INCOME  $ 1.750.000

4 0
3 years ago
Which of the following is a way to increase possession utility for a refrigerator?
Ivenika [448]
The correct answer is letter B. Providing a delivery service. Making an increase in possession is ensuring that you have the refrigerator or whatever product that you are getting. The ability to feel the tangible touch of a product gives you the possession.
6 0
2 years ago
Read 2 more answers
On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and
Mademuasel [1]

Answer:

Leary Company

The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:

= $320,000

Explanation:

a) Data and Calculations:

0% Note payable = $400,000

Payment period = 5

Annual installmental payments = $80,000

Prevailing rate of interest for similar note = 8%

Schedule

Period PV                 PMT            Interest               FV

1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09

2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66

3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71

4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44

5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00

Total                     $400,000.00    $-208,349.93

Carrying value

Ending value   = $400,000

Interest expense   -47,332.01

Cash repayment   -32,667.99

Carrying value = $320,000

6 0
3 years ago
What institution will Martha's lender check before granting or denying a loan or mortgage to Martha?
aalyn [17]

Answer:

A credit bureau

Explanation:

A credit bureau is a agency which collects the credit history of consumers so that creditors can make decisions about granting loans. So the only logical choice is for Martha's lender to check with them to get her credit history before denying or granting her a mortgage or loan.

6 0
2 years ago
Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products
jek_recluse [69]

Answer:

greenwashing

Explanation:

Greenwashing -  

It is the process , where the company spends more amount of time and monetary value on marketing the company as environmentally friendly , rather than decreasing the impact on environment , is referred to as greenwashing.  

It is basically a advertising stunt , in order to mislead the consumers , who buys the products just because the product is environmentally friendly.

Hence, from the question ,  

the practice performed by the company is greenwashing.  

4 0
2 years ago
Other questions:
  • The mere exposure effect most directly contributes to the positive relationship between ________ and liking.
    6·1 answer
  • A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates about one
    13·1 answer
  • Opportunity costs refer to:
    10·2 answers
  • Marcy has an 85% average in the class going into the final exam that is worth 30% of the grade. If Marcy makes a 100% on the fin
    7·1 answer
  • The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
    13·1 answer
  • g Explain the traditional interest-rate channel for expansionary monetary policy. Explain how a tight monetary policy affects th
    11·1 answer
  • Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $302,000, total variable expenses were $232,540, an
    6·1 answer
  • An advantage of organization in the u.s. that compete globally is
    12·1 answer
  • Scenario 4:
    15·1 answer
  • A weak company culture A. celebrates change and consensual decision-making. B. produces champions of innovation and creativity.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!