What is the effect on earnings in the year

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.

User Account

All Pages