Reference no: EM132808782

Problem 1: For share appreciation rights, the measurement date for computing compensation is the

Group of answer choices

Option 1: date the rights mature.

Option 2: date of grant.

Option 3: date the share reaches a predetermined amount.

Option 4: date of exercise.

Problem 2: What is the correct treatment of a stock dividend issued in midyear when computing the weighted average number of ordinary shares outstanding for earnings per share purposes?

Group of answer choices

Option 1: The stock dividend should be included in the weighted average number of shares outstanding only if the additional shares result in a decrease of three percent or more in earnings per share.

Option 2: The stock dividend should be ignored since no additional capital was received.

Option 3: The stock dividend should be weighted as if the additional shares were issued at the beginning of the year.

Option 4: The stock dividend should be weighted by the length of time that the additional shares were outstanding during the period.