Business, 17.04.2020 22:12 megababe04
On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 3% by the end of 2020.
Required:
1. What is the revised estimate of the total compensation?
2. What action will be taken to account for the options in 2019?3. Prepare the journal entries to record compensation expense in 2019 and 2020.
Answers: 3
Business, 22.06.2019 17:40
Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc
Answers: 2
Business, 22.06.2019 22:30
When the price is the equilibrium price, we would expect there to be a causing the market to put pressure on the price until it went back to the equilibrium price. a. above; surplus; upward b. above; shortage; downward c. below; surplus; upward d. below; shortage; downward e. above; surplus; downward?
Answers: 2
Business, 22.06.2019 22:40
In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeownerβs equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.
Answers: 1
On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager...
Mathematics, 24.02.2021 23:50
English, 24.02.2021 23:50
Mathematics, 24.02.2021 23:50
History, 24.02.2021 23:50
Spanish, 24.02.2021 23:50
English, 24.02.2021 23:50
Advanced Placement (AP), 24.02.2021 23:50
Social Studies, 24.02.2021 23:50
Biology, 24.02.2021 23:50
Mathematics, 24.02.2021 23:50