Question
A firm granted stock options to its eligible employees on January 1, with each employee able to purchase shares of common stock at a price
A firm granted stock options to its eligible employees on January 1, with each employee able to purchase shares of common stock at a price of $11 per share. The options vest in 5 years. Using the Black-Scholes options pricing model, the firm estimated that the individual employee stock options had a total fair value of $134. The company estimates that 8% of the options will be forfeited before vesting.
What balance will be recorded to the "additional paid-in capitalstock options" account upon granting these options? (Round to the nearest whole dollar.)
SHOW YOUR WORK PLEASE.
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