answer.
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
kvasek [131]
2 years ago
7

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

han December 31, Year 3, and expire on January 1, Year 7. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What is the amount of compensation expense for Year 1?
Business
1 answer:
Lilit [14]2 years ago
3 0

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

You might be interested in
You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these ear
EastWind [94]

Answer:

Growth rate  = 7.50%

Explanation:

Given:

Return on investment = 15%

Retention ratio = [1.5 / 3] 100 = 50%

Find:

Growth rate

Computation:

Growth rate  = Return on investment*Retention ratio

Growth rate  = 15% x 50%

Growth rate  = 7.50%

5 0
2 years ago
Joshua Industries is considering a new project with cash inflows of $478,000 for the indefinite future. Cash costs are 68 percen
Alex

Answer:

$93,940.85

Explanation:

Adjusted present value is the sum of net present value of after tax cash flow and net present value of tax shield.

First compute after tax cash flow:

Cash inflow = $478,000

Cash cost = 68% of $478,000 = $325,040

Pre-tax profit = 478,000 - 325,040 = $152,960

Tax = 34 %

After tax cash flow = 152,960 (1 - 0.34) = $100,953.60

Net present value of after tax cash flow = \frac{After\ tax\ cash\ flow }{Cost\ of\ equity} -Intial\ investment\\

= \frac{100,953.60}{0.142} - 685,000

= $25,940.85

Present value of tax shield = Amount of debt × tax rate

= 200,000 × 0.34

= $68,000

Adjusted present value = 28,940.85 + 68,000

= $93,940.85

4 0
2 years ago
Austrian Airlines was sued by a 51-year-old former director of sales who charged that he was dismissed and replaced by an employ
Angelina_Jolie [31]

Answer:

the correct answer is True

good luck ❤

7 0
2 years ago
Planning for acquisition support activities and requirements that deal with fielding/deployment should begin as early as the: [I
Nataly [62]

Option A, Materiel Solution Analysis Phase

Explanation:

The equipment answer Analysis  part assesses potential solutions for a required capability in associate Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for ensuing program milestone selected by the Milestone call Authority.

The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.

8 0
2 years ago
9. The major problem addressed by the warehouse layout strategy is: A) minimizing difficulties caused by material flow varying w
Dimas [21]

Answer:

C) Addressing trade-offs between space and material handling.

Explanation:

Addressing trade offs between material handling and space in the warehouse is a major problem been tackled in warehouse layout strategy.

In any case where it is been found that your warehouse or distribution centre capacity is at bursting point, and costs are escalating while service levels are not being met, it is natural to assume that a bigger warehouse would go a long way to addressing the issues.

That is why experts in this field that have extensive experience in assisting customers in the identification of causal issues through its(warehouse) facility design, operations audits and also layout.

3 0
2 years ago
Read 2 more answers
Other questions:
  • You look up the phone number of the new pizza hut and repeat the number silently in your head until you find a pad of paper to w
    9·1 answer
  • Technology products with particularly strong security features are said to be: question 10 options: hardened. virtualized. integ
    12·1 answer
  • At the end of its first year of operations, shapiro's consulting services reported net income of $27,000. they also had account
    12·1 answer
  • "when a tourist buys a sand dollar at a beach shop, what are they buying?"
    9·1 answer
  • Consider the demand for socks. What would cause a movement from one point on the demand curve to a point further down the curve?
    9·1 answer
  • Christin, the CEO of a national IT manufacturer, was approached by Ultimate Phones, a new company that is marketing a new type o
    14·1 answer
  • Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showe
    11·1 answer
  • Describe how you plan to account for the organizational roles and experience level of your audience as you prepare your presenta
    6·1 answer
  • Over the next three years, Distant Groves will pay annual dividends of $.65, $.70, and $.75 a share, respectively. After that, d
    12·1 answer
  • Problem 14-15 Finding the WACC [LO3] You are given the following information for Watson Power Co. Assume the company’s tax rate
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!