Sunny Side, Inc. granted its CEO 5,000 options on July 1, 2016 with an exercise price of
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Sunny Side, Inc. granted its CEO 5,000 options on July 1, 2016 with an exercise price of $25. The market value of options based on an option pricing model is $300,000. The market price of the stock on July 1, 2016 was $30 per share. The vesting period is two years and options expire on July 1, 2021. The fiscal year end is December 31. If instead of issuing the options the company issued restricted stock with a three-year vesting period, then how many restricted shares would need to be issued to record the same amount of compensation expense for the year ended December 31, 2016.
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
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