Sam jones is the president of apollo finance a payday

Reference no: EM13604310

Sam Jones is the president of Apollo Finance, a payday lender. The company's proxy statement contains the following description of Mr. Jones' pay package. Mr. Jones is eligible for an annual incentive bonus equal to 1% Net Income of the company and is eligible for an additional bonus upon annual increases in Net EPS only after earnings exceed 15% over the prior year. The additional bonus is determined as follows:

EPS Growth Additional Bonus
EPS increases up to 14.9% $0
EPS increases of 15% to 24.9% 2% of the earnings increase from the prior year
EPS increases of 25% to 34.9% 3% of the earnings increase from the prior year
EPS increases above 35% 4% of the earnings increase from the prior year

Assume no change in the number of shares of outstanding stock during the year.

A. Suppose that Apollo Finance had $75 million of Net Income for the year. How much of a bonus would Mr.Jones receive if the EPS increase for the year was 12%?
B. B. Suppose that Apollo Finance had $75 million of Net Income for the year. How much of a bonus would Mr. Jones receive if the EPS increase for the year was 28%.

Reference no: EM13604310

Questions Cloud

The arm of the robot has a fixed length of r3ft and it : the arm of the robot has a fixed length of r3ft and it grips a moves along the path z3sinthetaft where theta is in

Payworld inc sells playground equipment to schools and : 1. playworld inc. sells playground equipment to schools and municipalities. invoices are mailed at the end of each

When individual products become identifiablethe difference : 1. when individual products become identifiable.2. the difference in revenue between alternatives.3. a cost incurred by

At the end of the current year accounts recievable has a : at the end of the current year accounts recievable has a balance of 700000 allowance for doubtful accounts has a credit

Sam jones is the president of apollo finance a payday : sam jones is the president of apollo finance a payday lender. the companys proxy statement contains the following

The amount of cola in a 12-ounce can is uniformly : the amount of cola in a 12-ounce can is uniformly distributed between 11.96 ounces and 12.05 ounces.a. what is the mean

Mussatto company expects to produce 52560 units of product : mussatto company expects to produce 52560 units of product ioa during the current year. budgeted variable manufacturing

What kind of information you plan to get what kind of : professor yao wants to know whether students at eku can score higher by attending class each time. he understands that

Te magnitude of the charges is q82 oc and the distance : the drawings show three charges that have the same magnitude but may have different signs. in all cases the distance d

User Account

All Pages