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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.

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Lorie Nursery plans to sell 320 potted plants during April and 240 units in May. Lorie Nursery keeps 15% of the next month's sal
Dmitry [639]

Answer:

Lorie Nursery should produce during April 308 units

Explanation:

According to the given data, In order to calculate how many units should Lorie Nursery produce during April we would have to use the followinf formula:

Required Production = Expected Sales + Desired Closing Invenory - Opening Inventory

Required Production = 320 + 240 * 15 % - 320 * 15 %

=320 + 36 - 48 = 308 units

Lorie Nursery should produce during April 308 units

8 0
2 years ago
Read 2 more answers
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
Harrizon [31]

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

Project A:

NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58

Project A should be accepted.

Project B:

NPV = -\$135,000 +\frac{\$50,000}{(1+0.16)} +\frac{\$30,000}{(1+0.16)^2} +\frac{\$100,000}{(1+0.16)^3}\\NPV =-\$5,535.89

Project B should be rejected.

6 0
2 years ago
Esther and Holly have a disagreement over which company to present their business idea to. They decide to disregard their differ
aalyn [17]

Answer: True

Explanation:

From the question, we are informed that Esther and Holly have a disagreement over which company to present their business idea to and that they decide to disregard their different stances on environmental issues and focus solely on which business will provide them with the most resources in the short-term.

The above scenario shows that Esther and Holly are focusing on interests, and not positions. This is shown by them disregard their different stances and focusing on a common goal.

5 0
1 year ago
Bolton Tire Manufacturing and the union came to an impasse during negotiation of the collective bargaining agreement. Specifical
Maslowich

Answer:

The correct answer is the option A: the employees have engaged in an unfair labor practice strike.

Explanation:

To begin with, due to the fact that the union was already establishing the area for the negotiation and they might have planeed obviously to keep trying to increase the situation in their favour then the action taken by the employees was a bit hurry and was obvious that was not thought very well with calm minds and therefore that they engaged in an unfair labor practice strike because they had to be patience and wait for the union to improve the situation for them, because their are the representatives and if the company sees that the workers do not obey to the representatives then the union will lose negotiation power and the situation will get worse for them.

4 0
1 year ago
Janice​ Carrillo, a​ Gainesville, Florida, real estate​ developer, has devised a regression model to help determine residential
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i just need points

Explanation:

8 0
1 year ago
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