How you would calculate spread owed to you on exercise

Assignment Help Operation Management
Reference no: EM131690693

Your employer has awarded you 3,000 shares of SARs with a strike price of $20 per share. When SARs are exercised, the company converts the gain and compensates the employee with shares of company stock. The SARs have a five-year graduated and equal vesting schedule and a ten-year term. On the third anniversary of the grant, the market price is $25 per share and you decide to exercise your SARs. (a) Briefly explain the tax consequences, if any, of your exercise. (b) Briefly explain how you would calculate the “spread” owed to you on exercise. (c) Briefly explain how you would calculate the number of shares you would receive.

You have received a grant of 2,000 NQSO shares. They vest on a graduated basis over a five-year period. The strike price was $10 per share. It is now three years since the grant and the current price is $20 per share. You decide to exercise on a cashless basis. (a) How many shares can you exercise? (b) What will be your “pretax” gain on the exercise? (c) How will the options be taxed? (d) Assume the price has increased only $0.50 since the grant. What financial reason would there be to exercise now?

Reference no: EM131690693

Questions Cloud

What is the current maximum output of the process : What is the maximum number of orders waiting to be picked? What is the current maximum output of the process?
Should mayflower corp accept this special order : Required - Should Mayflower Corp accept this special order? Please state your decision and provide numerical support for your decision
How can you avoid presenting a negative model : How can you avoid presenting a negative model? How will you make sure you are making ethical decisions in preparing and conducting courses?
Compute the multifactor productivity : Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment.
How you would calculate spread owed to you on exercise : Your employer has awarded you 3,000 shares of SARs with strike price of $20 per share. Briefly explain how you would calculate “spread” owed to you on exercise.
Explain websites that you plan to use for your research : Identify three Websites that you plan to use for your research on a paper to convince. When evaluating, think of yourself as an investigative reporter who is ch
Why understanding parental goals is essential to development : Describe two or more considerations pertaining to this issue that an infant/toddler professional would need to keep in mind when interacting with families.
Oedipus rex was the perfect ritual tragedy : Aristotle told us that OEDIPUS REX was the perfect ritual tragedy. .Do you think Aristotle would have approved of MACBETH? Why or why not?
Discuss how a practitioner can further enhance : How does this model apply to your current studies and your future profession? Be sure to discuss both parts of the model in your plan

Reviews

Write a Review

Operation Management Questions & Answers

  Written responses for each issue and point out contingent

Prepare concise, written responses for each issue and point out any contingencies that should be considered.

  What do you think about walt disney''s decision

What do you think about Walt Disney's decision not to purchase merchandise from Bangladesh? Is this and appropriate way of dealing with the problem?

  What exactly is a third party administrator

What exactly is a Third Party Administrator and how does it help a company manage its benefit programs?

  Example of the selected individual leadership in action

Explain the key characteristics that the selected individual possesses that makes you believe he or she is an effective leader.

  Used to assess the significance of parametric interval data

Which of the following is a push strategy that companies use to promote their products? When analyzing a comparison question, what type of statistical test would be used to assess the significance of parametric interval data?

  Technology requirements for the health care industry

Identify and analyze what you believe to be the most significant new technology requirements for the health care industry. Indicate how providers should approach the implementation of this new technology requirement that you have identified. Provi..

  Using the sociotechnical systems theory

Describe the concept of HRD change in an organization using the Sociotechnical systems theory. Rationalize suitable interventions to address emotions of change.

  Give the answer of muliple choice question

When considering the following activities, which is the best example of a project?Which of the following choices is NOT one of the driving forces behind the increasing demand for project management?.Which dimension of project management centers on cr..

  How would you ensure that data are of sufficient quality

Develop a listing of what you believe are the most important metrics for operations managers. (Hint: Be sure to consider the triple bottom line.) How does each metric support the overall financial performance of the organization? What data would be u..

  What are the four reactive reasons to go international

Companies go international for different reasons. What are the four reactive (defensive) reasons to go international? Explain.

  Identify the tangible parts of this product andits service

What is De Mar's product? Identify the tangible parts of this product andits service components.How should other areas of De Mar (marketing, finance, personnel)support its product strategy?Even though De Mar's product is primarily a service product, ..

  About way in which strategy is crafted in your organization

In our first discussion, let's think about the way in which strategy is crafted in your organization.

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