Assume that on January 1, year 1, DEF, Inc. issued 6,000 stock options with an estimated value of $8 per option. Each option entitles the owner to purchase one share of DEF stock for $20 a share (the per share price of DEF stock on January 1, year 1 when the options were granted). The options vest at the end...
Rutter Inc. granted 300,000 stock options to executives and employees on January 1, 2017. The options have a strike price is $10 per share and expire in 2019. The par value of the common stock is $1. Using an option pricing model, the company calculates a fair value of $20 per share. The expected service period, or benefit period, is 3 years. Prepare...
Assume that on January 1, year 1, ABC Inc. issued 8,800 stock options with an estimated value of $15 per option. Each option entitles the owner to purchase one share of ABC stock for $27 a share (the per share price of ABC stock on January 1, year 1, when the options were granted). The options vest at the end...
Shamrock Company adopted a stock-option plan on November 30, 2019, that provided that 69,000 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $8 a share. The market price was $11 a share on November 30, 2020. On January 2, 2020, options to purchase 26,500...
Grouper Company adopted a stock-option plan on November 30, 2019, that provided that 67,900 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $8 a share. The market price was $13 a share on November 30, 2020. On January 2, 2020, options to purchase 26,100...
SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 7 million of the company’s $1 par common shares for $27 within the next six years, but not before January...
SSG Cycles manufactures and distributes motorcycle parts and supplies, Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 8 million of the company's $1 par common shares for $26 within the next six years, but not before January...
On November 1, 2020, Riverbed Company adopted a stock-option plan that granted options to key executives to purchase 24,900 shares of the company's $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6...
Current Attempt in Progress On November 1, 2020, Cullumber Company adopted a stock option plan that granted options to key executives to purchase 27,300 shares of the company's $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the...
Brief Exercise 19-5 Stock options; forfeitures On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key executives exercisable for 1.5 million shares of the company’s common stock at $25 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1,...