Sam Lawson is a vice president at a large communications firm. His compensation includes a salary of $400,000, a bonus of $200,000 and a stock option package that allows him to purchase 30,000 shares of the company’s stock at $45 per share. He can exercise the option anytime within a three year period that starts on the first of next month. The stock is now selling at $62.50 per share. If the current price holds until the first of the month, and Sam exercises his option, how much will he make this year?
Answer to relevant QuestionsIf Sharon Henderson of the previous problem 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 ...Sam Rothstein wants borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How much will his payment be? Use amount and annuity techniques to calculate the present value of the following pattern of annual cash flows at an annual interest rate of 12%. Round to the nearest dollar. General Machine Works Inc. (GMW) has been losing money for some time but has managed to maintain an annual dividend of $1.. The company’s strategy is to restructure by getting smaller while working on labor and product ...Oxbow Inc. is contemplating a new venture project and has done a detailed five year cash flow estimate with the following result ($000): The firm’s cost of capital is 12%. a. Use a financial calculator to compute the ...
Post your question