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Dionetics, Inc. has a restricted stock unit (RSU) compensation plan. During 2017, Dionetics granted 10 million shares under the RSU plan. During 2018, 2 million
Dionetics, Inc. has a restricted stock unit (RSU) compensation plan. During 2017, Dionetics granted 10 million shares under the RSU plan. During 2018, 2 million shares vested under the plan and another 5 million shares were granted. The grant- date fair-value of the all vested and granted shares was $5.00/share. Which of the following statements is correct? 1) The RSU plan will increase compensation expense in 2018 by $10 million. 2) The RSU plan will increase compensation expense in 2017 by $50 million. 3) The RSU plan will reduce compensation expense in 2018 by $10 million. 4) The RSU plan will increase compensation expense in 2018 by $40 million. 5) The RSU plan will have no effect on compensation expense in 2018
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