Question: Weaver Industries implements a new share-based compensation plan in 2014. Under the plan, the companys CEO and CFO each will receive non-qualified stock options to

Weaver Industries implements a new share-based compensation plan in 2014. Under the plan, the companys CEO and CFO each will receive non-qualified stock options to purchase 100,000, no par shares. The options vest ratably (1/3 of the options each year) over three years, expire in 10 years, and have an exercise (strike) price of $27 per share. Weaver uses the Black-Scholes model to estimate a fair value per option of $18. Required a. Use the financial statement effects template to record the compensation expense related to these options for each year 2014 through 2016. b. In 2017, the companys stock price is $24. If you were the Weaver Industries CEO, would you exercise your options? Explain. c. In 2019, the companys stock price is $46 and the CEO exercises all of her options. Use the financial statement effects template to record the exercise.

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