Analyzing Convertible Preferred Stock Disclosure In a press release dated April 22, 2015, HealthSouth provided notice of conversion of their 6.5% Series A Convertible Preferred Stock, as follows.

HealthSouth Corporation (NYSE: HLS) today announced it is providing notice to the registered holders of the Company’s 6.5% Series A Convertible Preferred Stock. Pursuant to Section 5 of the Certificate of Designations for the preferred stock, the Company is exercising its right to cause all of the outstanding shares of the preferred stock to be converted into a number of whole shares of the Company’s common stock. On the forced conversion date (April 23, 2015), all 96,245 shares of preferred stock outstanding will be converted. Each share of preferred stock will automatically be converted into 33.9905 shares of common stock.

On April 23, 2015, the carrying value of the Series A Convertible Preferred Stock was $93.2 million and HealthSouth’s common stock has a par value of $0.01 per share.

Required a???? How many shares of common stock will HealthSouth issue to preferred stockholders?
b???? Use the financial statement effects template to record the forced conversion.
c???? Identify and estimate the important benefit to HealthSouth’s cash flow from conversion.
d???? How will the conversion affect the diluted shares outstanding?
P8-63.AInterpreting Disclosure on Share-Based Compensation Including Tax Effects Intel reported the following information in its 2015 10-K related to its restricted stock plan.
Information with respect to outstanding restricted stock unit (RSU) activity is as follows:
In millions Number of RSUs Weighted Average Grant-Date Fair Value December 29, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 109.3 $22.03 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.4 $21.45 Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.5) $20.21 Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.9) $22.06 December 28, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 $22.47 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.2 $25.40 Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (42.5) $22.33 Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.6) $22.94 December 27, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . 119.4 $23.89 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.4 $31.63 Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46.6) $23.61 Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.8) $25.76 December 26, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . 107.4 $26.93 Expected to vest as of December 26, 2015. . . . . . . . 102.5 $26.93 The aggregate fair value of awards that vested in 2015 was $1.5 billion ($1.1 billion in 2014 and $1.0 billion in 2013), which represents the market value of our common stock on the date that the RSUs vested. The grant-date fair value of awards that vested in 2015 was $1.1 billion ($949 million in 2014 and $899 million in 2013). The number of RSUs vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated future forfeitures. As of December 26, 2015, there was $1.8 billion in unrecognized compensation costs related to RSUs granted under our equity incentive plans.
Required a???? How do restricted stock and stock options differ? In what respects are they the same?
b???? Why do companies impose vesting periods on restricted stock grants?
c???? Use the financial statement effects template to record the restricted stock granted to senior executives during 2015. The common stock has a par value of $0.001 per share.
d???? Use the financial statement effects template to record the 2015 compensation expense related to Intel’s restricted stock awards. (????int???? The expense is equal to the grant-date fair value of the RSUs that vested during the year.) Include the tax effects of the compensation expense. Assume a tax rate of 35%.