Question: Intelliant granted stock options to employees on January 1 2013
Intelliant granted stock options to employees on January 1, 2013, permitting them to purchase 24.6 million shares of Intelliant common stock for $22.63 per share. An option-pricing model indicates that the value of each option on this date is $5.79. Intelliant expects to receive the benefit of enhanced employee services for the next three years. On December 31, 2016, employees exercise these options when the market price of the stock is $40 per share. Compute the pre-tax effect of this option plan on the net income of Intelliant for 2013 through 2017.
Answer to relevant QuestionsRefer to Exhibit 1.9, which contains balance sheet information from the financial report of Palmer Coldgate, a U.S. consumer products manufacturer.This firm reports all amounts in millions of U.S. dollars ($). Answer the ...The statement of cash flows for BargainPurchase, a retailer, showed a net cash inflow from operations of $4,125, a net cash outflow for investing of $6,195, and a net cash inflow for financing of $3,707. The balance sheet ...Morrissey Corporation grants 50,000 stock options to its managerial employees on December 31, 2013, to purchase 50,000 shares of its $1 par value common stock for $60 per share. The market price of a share of common stock on ...Exhibit 15.6 reproduces a portion of the statement of changes in shareholders’ equity for Microtel Corporation for 2013. When Microtel repurchases its common stock, it cancels the outstanding shares. Prepare journal ...Company A and Company B both start 2012 with $1 million of shareholders’ equity and 100,000 shares of common stock outstanding. During 2012, both companies earn net income of $100,000, a return of 10% on common ...
Post your question