Benign offered directors an option scheme based on a three year period of service. The number of
Question:
Benign offered directors an option scheme based on a three year period of service.
The number of rights taken up by directors at the inception of the scheme was 100 million.
The options were exercisable shortly after the end of the third year. The fair value of the options and the number of rights expected to vest at each relevant point:
Year Rights exp to vest FV of the option
0 97m 40c
1 90m 45c
2 93m 37c
3 94m 56c
Required
Show Financial Statement effect
Share Appreciation Right
Equity option
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg