Personal wealth outside of the stock option

Assignment Help Finance Basics
Reference no: EM131238463

Henderson Industries Inc.'s stock is currently selling at $22.60 per share. Sharon Jacobs, the CEO, has options to buy 200,000 shares at $25.50 per share that expire at the end of this year. Sharon feels that if the traditional accounting method is used, implementing the deferred payment sales program will push the stock's price about half way toward the level it was at two years ago which was about $50.00.

If Sharon Jacobs is also a founder of the company and has retained 8 million shares of its stock, how much of a difference will the auditors' decision make in her personal wealth outside of the stock option? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to one decimal place.

Reference no: EM131238463

Questions Cloud

Describe the physical architecture of system : How do the nonfunctional requirements affect your architectural choices - Describe the physical architecture of this system and explain how it accommodates those quality requirements.
Find the received field in the headers : Find the "Received" field in the headers and write down as many DNS names or IP addresses as you can. Also look for common details in the header elements of the different messages, such as the same e-mail servers and spammers.
Share of the company common stock : You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $35 billion, price/earnings ratio = 20.5, common shares outstanding = 12 million, and market/book ratio 2.8. Calculate the price of a share of..
Obtain the firm balance sheet and income statement : Select a benchmark firm to compare your company against. The benchmark firm is typically the largest competitor. Johnson & Johnson. Obtain the firm's balance sheet, income statement, and statement of cash flows for the past 5 years. Download or re..
Personal wealth outside of the stock option : If Sharon Jacobs is also a founder of the company and has retained 8 million shares of its stock, how much of a difference will the auditors' decision make in her personal wealth outside of the stock option? Enter your answer in millions. For exam..
What is back pressure that will produce maximum flow rate : A convergent nozzle has a minimum area of 1 ft2 and receives air at 25 lbf/ in.2, 1800 R, flowing at 330 ft/s. What is the back pressure that will produce the maximum flow rate?
Evaluate the user interface of a website : Identify an e-commerce website whose interface has some design challenges -  There are some guiding principles that can help you as a systems analyst to develop interfaces that will create a positive experience for the user.
Is this primarily a contrast or a comparison essay : In your opinion is this primarily a contrast or a comparison essay? Is the essay an informative analysis or a persuasive essay? Explain. Is it primarily organized point by point or block?
Expected value and variance of the income : a. Calculate the expected value and variance of the income. b. Suppose you have a utility function of U(W)=√W and you have zero initial wealth. If someone offers to pay $6,500 (a guaranteed payment) in order to lease and run the business, should y..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the annual value of the depreciation tax shield

The project is expected to increase annual sales by $338,000 and annual cash expenses by $184,000. The company has a marginal tax rate of 32 percent. What is the annual value of the depreciation tax shield?

  The present annual dividend is 270 and the required return

wells engineering issued preferred stock about two years ago. the present annual dividend is 2.70 and the required

  Identify the different business structures.

Write a 350 to 700 word explanation of how each business structure might and might not be advantageous.

  Npv method-payback method-irr method

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method.

  If the firm has 4 million per day in collections and 3

beths society clothiers inc. has collection centers across the country to speed up collections. the company also makes

  Prepare the statement of retained earnings for the year ende

The firm had a net profit after taxes of $5.15 million. Prepare the statement of retained earnings for the year ended December 31, 2012.

  Find the projects simple regular payback

The ABC Company is planning a project which has an up-front cost paid today at t = 0. The project will create positive cash flows of $70,000 a year at the end of each of the next 5 years.

  Determining the operating cash flow

Q) What is the 2012 operating cash flow? Q) What is the 2012 cash flow to creditors? Q) What is the 2012 cash flow to stockholders?

  Malfoy corporation paid a 300 dividend per share this

malfoy corporation paid a 3.00 dividend per share this year.nbspnbspits total earnings per share were 6.00. malfoys

  Capital structure-fallacies and misconceptions

What type of capital structure should the firm choose and why? Please comprise capital structure fallacies and their effects on a firm's decision.

  If a contractrsquos open interest declines during an

if a contractrsquos open interest declines during an actively traded day what does it suggest about the number of

  What factors are responsible for the recent surge

What factors are responsible for the recent surge in international portfolio investment?

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