What is the effect on earnings in the year

Assignment Help Accounting Basics
Reference no: EM13124813

Under its executive stock option plan, National Corporation granted options on January 1, 2013, that permit executives to purchase 17 million of the company's $1 par common shares within the next seven years, but not before December 31, 2016 (the vesting date). The exercise price is the market price of the shares on the date of grant, $21 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives?

Reference no: EM13124813

Questions Cloud

What is the concentration of ba2+ in the new solution : When 24 mL of a 170 mL stock solution containing 1.5 M BaF2 is diluted to 76 mL, what is the concentration of Ba2+ in the new solution
Linear equations-linear inequalities : In what fundamental way does the solution set of a system of linear equations differ from the solution set of a system of linear inequalities?
Synthesis essay of three of freakonomics and the real drug : an example of a synthesis essay on chapter three of freakonomics and the article The Real Drug Czar, and how the two have connections.
Probability-household has fax machine and personal computer : Suppose 91% of all Australian households having a fax machine have a personal computer. A Australian household is randomly selected. What is the probability that the household has a fax machine and a personal computer?
What is the effect on earnings in the year : The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives?
Problem regarding cost of goods sold : Cost of goods sold for 2010 was $3,600,000. If Butler Company had used FIFO during 2010, its cost of goods sold for 2010 would have been ??
How much heat would be released by its complete combustion : If a bottle of nail polish remover contains 175mL of acetone, how much heat would be released by its complete combustion? The density of acetone is 0.788g/ML.
System of linear equations-stamps : A stamp collection consists of 3, 8, and 15 cent stamps. The number of 8 cent stamps is one less than triple the number of 3 cent stamps. The number of 15 cent stamps is six less than the number of 8 cent stamps.
Who is the commissioner of the irs : For the Project, you will need to submit a written research paper which answers the following questions. This Project is due by Sunday, December 9, 2012. Please read the instructions below.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Evaluate marginal tax rate

Suppose her marginal tax rate is 40 % this year and next year, and that she can earn an after-tax rate of return of 8% on her investments.

  Fund balance of capital projects fund

Supposing the county has incurred $800,000 of construction costs on the project by end of its fiscal year (June 30,20x5), the fund balance of capital projects fund employed to account for this project would be?

  Mecklenburg county balanced scorecard

A company that provides training, certification and consulting services to commercial, government, and non-profit organizations in applying best practices in balanced scorecard (BSC), strategic performance management and measurement, and transform..

  Determining the actual purchase price

High & Dry’s standard price for direct materials is $3.60 per unit-The actual purchase price per unit was

  Cash flow statement and computing net cash flow

Net cash flow provided (used) by operating activities. Net cash flow provided (used) by investing activities. Net cash flow provided (used) by financing activities.

  Statement of cash flows under indirect method

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include:

  Purchase contracts

A company entered into the following material contracts at the beginning of the year: For each of the above contracts, prepare any necessary journal entries and notes to be included in the financial statements.

  Problem on inventory acquisitions

-All sales are on credit. -Customer amounts on account are collected 50% in the month sale and 50% in the following month.  -Cost of goods sold is 35% of sales.  -Farley purchases and pays for merchandise 60% in the month of acquisition and 40% in th..

  Market values and book values

Building an Income Statement, During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm's cost of goods sold and selling expenses were $525,000 and $215,000, respectively. Senbet alo had note payable of $800,000...

  Determining expenses on vacations

During 2012, Harry, a self-employed accountant, travels from Kansas City to Miami for a 1-week business trip.

  Computer-assisted audit technique

What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?

  Accumulated retained earnings impact book value

Explain how accumulated retained earnings impact the book value of a firm's stock. Give two reasons why the market book share prices might be different. Be specific.

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