The following is a summary of the stock option activity at NetFlix during 2016. Options Outstanding Shares
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Question:
The following is a summary of the stock option activity at NetFlix during 2016.
Options Outstanding |
Shares Available for Grant | Number of Shares | Weighted- Average Exercise Price |
Balances as of December 31, 2015 | 16,845,316 | 20,995,756 | 32.39 | |||
Granted | (3,555,363 | ) | 3,555,363 | 102.03 | ||
Exercised | — | (2,113,772 | ) | 17.48 | ||
Balances as of December 31, 2016 | 13,289,953 | 22,437,347 | 44.83 |
Required:
a. | How many options did NetFlix grant to employees during the year? At what price may NetFlix employees buy shares in the future for options granted during 2016? |
b. | How many options did employees exercise during the year? |
c. | When employees exercised their options during 2016, how much cash did NetFlix receive? |
d. | Assume that NetFlix granted options “at the money” during 2016. How much profit did employees make at exercise? |
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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