Calculate the amount of share option benefit assessable

Assignment Help Financial Management
Reference no: EM132025481

Linda was given an Option to purchase 100,000 shares at S$2.30 each at her local manufacturing company under the Staff Share Option Scheme. She exercised the option and later sold the shares. The details of the share prices and the relevant dates are given below:

5 October 2015

Option Exercise Price S$2.30

12 July 2016

Option Exercised S$3.50

19 August 2017

Sold the Shares S$5.00

Question:

Calculate the amount of Share Option benefit assessable on Linda.

Reference no: EM132025481

Questions Cloud

Bondholders expect to receive in event of recession : What payoff do bondholders expect to receive in the event of a recession? What is the promised return on the company's debt?
Cost of capital for otherwise identical all-equity firm : What is the company’s debt equity ratio? What is the cost of capital for an otherwise identical all-equity firm?
Cash flow be under the proposed capital structure of firm : What will Ms. Brown’s cash flow be under the proposed capital structure of the firm?
Two mutually exclusive projects : Consider the following two mutually exclusive projects
Calculate the amount of share option benefit assessable : Calculate the amount of Share Option benefit assessable on Linda.
Which is eventually followed by economic crisis : Describe a typical financial bubble that usually begins with some kind of displacement and which is eventually followed by an economic crisis.
What would be hedged annual cash flow in dollars : Assume you plan to buy 10 million pounds of UK consols and hold them for three years, using information above what would be hedged annual cash flow in dollars.
Explain its relation to or effect on portfolio management : Being specific, identify a Hedge Ratio and explain its relation to or its effect on portfolio management and why it is analytically useful?
What are mutually exclusive projects : What are mutually exclusive projects and what are several capital budgeting techniques that can be used to choose the best project?

Reviews

Write a Review

Financial Management Questions & Answers

  Describe the organizational forms a company

Describe the organizational forms a company might have as it evolves from a start up to a major corporation.

  Increasing the promotional budget for a product

Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

  Calculating present values band future values

Calculating Present Values. Calculating Future Values. Calculating rates of return. Refer back to Series EE saving bonds.

  Resulting change in the price of this bond as percent of par

If a 2-year Ba2/BB bond is upgraded to the lowest investment-grade rating will be the resulting change in the price of this bond as a percent of par?

  The dividend is expected to increase

A firm recently paid a $1.00 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $100. If the required rate for this stock is 14 percent, what is it..

  Unethical financial management business practice

Provide an example of an unethical financial management business practice. Provide an example of an ethical but inefficient financial management business practice.

  The asian financial crisis provided some valuable lessons

The Asian financial crisis provided some valuable lessons about nation-state and global financial system. What are some of those lessons?

  Share price with the deferred dividend to the share price

A company decides to invest $250 million cash in one-year government bills yielding 4% and use the proceeds from the sale of the bills to pay a higher dividend next year. What would be the company's share price? Compare the share price with the defer..

  How much will you have at the end of the time horizon

Assuming you earn a 9.6% rate of return during the entire period, how much will you have at the END of the time horizon?

  Make chart showing the theoretical and practical dirty

Make a chart showing the theoretical and practical dirty and clean values of the bond

  What can business do to improve its climate for diversity

If the expected return on ABC stock is 11%, it has a beta of 0.6 and the risk free rate is 4%. What is the market risk premium? You would like to purchase a 10 year annuity for $850. The rate of return is 6.5%. From this annuity, what is the annual c..

  Today to realize his retirement dream

For this problem, you will need to upload your word document or excel file to receive full or partial credit. Brothers, Mark and Mike Lalla want to plan for their retirement and need your advice. Both men will retire next year and thus will need the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd