Total compensation cost pertaining to the restricted shares

Assignment Help Financial Accounting

Reference no: EM13744723

First Link Services granted 4.6 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. The common shares have a market price of $12 per share on the grant date.

1. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares?

Total Compensation Cost = _____________ Million

2. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?

Effect on Earning: (Decrease by / Increase by / No effect) _____________ Million

Reference no: EM13744723

Questions Cloud

Calculate mcdonnell-myers earnings per share for the year : McDonnell-Myer Corporation reported net income of $1,150 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on Feb. 28. As part of an annual share repurchase plan, 6 million shares were retired on A..

Create new challenges for managers : Address the following questions in your Discussion response making references to both the article and the case in your response: Do you think increasing age diversity will create new challenges for managers. What types of challenges do you expect w..

Total compensation cost pertaining to the stock options : Under its executive stock option plan, National Corporation granted options on January 1, 2013, that permit executives to purchase 20 million of the company’s $1 par common shares within the next seven years, but not before December 31, 2016 (the ves..

Translation and conversion are different : Translation and conversion are different. One is the physical exchange of one currency for another, and the other is the restatement of the currency in another form, such as British pounds, U.S. dollars, and Japanese yen.

Total compensation cost pertaining to the restricted shares : First Link Services granted 4.6 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. The common shares have a market price of $12 per share on the grant date. Ignoring taxes, what is ..

Solving for unknown lease payment : Problem 6-11 Solving for unknown lease payment [LO6-8, 6-9] Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $820,000. Benning wants to be reimburse..

Write a four pages essay about the recent egypt militry coup : Write a four pages essay about the recent Egypt Militry coup by General Al- sisi. The essay has to be linked to the U.S forian policy, how the U.S governemnt is supporting the Egyption army.

Shares outstanding after adjustment for dilutive securities : DEPS is net income available to common shareholders divided by the number of common shares outstanding after adjustment for all dilutive securities that could possibly be issued. DEPS is always equal to or less than BEPS. In this problem, the differe..

Analyze links between technological advances and stylistic : Analyze the causal links between technological advances and stylistic changes.

User Account

All Pages