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 enhanc...

The value of the stock options on January 1 2013 is 142434 million Intelliant am ...

Intelliant granted stock options to employees on January 1, 2013, permitting them to purchase 24.6 million shares

Question:

Intelliant granted stock options to employees on January 1, 2013, permitting them to purchase 24.6 million shares of Intelliant 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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...