A firm issues 1 stock option and 1 restricted stock unit to an employee. The exercise...

 

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A firm issues 1 stock option and 1 restricted stock unit to an employee. The exercise price of the stock option is $5. The fair value of the option is $3. Common stock price on grant date is $5. The restricted stock unit and stock option vests 3 years later, and the employee exercises their stock option on that date, when the common stock price is $12. What is the accounting expense recorded over the life of the awards? What is the value of the awards to the employee? Expense: $8 Value to Employee: $19 O Expense: $10 Value to Employee: $8 O Expense: $10 Value to Employee: $19 O Expense: $8 Value to Employee: $24 O Expense: $10 Value to Employee: $24 A firm issues 1 stock option and 1 restricted stock unit to an employee. The exercise price of the stock option is $5. The fair value of the option is $3. Common stock price on grant date is $5. The restricted stock unit and stock option vests 3 years later, and the employee exercises their stock option on that date, when the common stock price is $12. What is the accounting expense recorded over the life of the awards? What is the value of the awards to the employee? Expense: $8 Value to Employee: $19 O Expense: $10 Value to Employee: $8 O Expense: $10 Value to Employee: $19 O Expense: $8 Value to Employee: $24 O Expense: $10 Value to Employee: $24

Answer rating: 100% (QA)

The correct answer is Expense 10 Value to Employee 24 T... View the full answer