On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 10 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 90 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2021. Four million treasury shares were...
On January 1, 2020, Bridgeport Corporation granted 5,300 options to executives. Each option entitles the holder to purchase one share of Bridgeport’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $68 per share on the date of grant. The fair value of the options...
Indigo Ltd. has an executive stock option plan, details of which follow: • The plan entitles the CEO to purchase 8,400 common shares at $25 each, following a vesting period. • The vesting period is January 1, 2020 through December 31, 2021. • The exercise period is January 1, 2022 through December 31, 2022. • The CEO exercises 6,100 of...
On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: ● January 1, 2018 – The company issued 339,000 options to senior management executives for the purchase of shares at $9 / share. The fair value of the options using...
Assume that on January 1, year 1, ABC Inc. issued 5,000 stock options with an estimated value of $10 per option. Each option entities the owner to purchase one share of ABC stock for $25 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...
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, 2018. The options permit holders to acquire 20 million of the company’s $1 par common shares for $15 within the next six years, but not before January...
On December 31, 2020, Dow Steel Corporation had 680,000 shares of common stock and 308,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $480,000 and $77,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 54,000...
On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 6 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 144 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were...
Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 29 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share....
On January 1, 2020, Ayayai Corporation granted 5,100 options to executives. Each option entitles the holder to purchase one share of Ayayai's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $70 per share on the date of grant. The fair value of the options...