Facebook, Inc. is recognizing expenses related to employee stock options for the year. The

following data is provided:

● Number of Options Granted: 10,000

● Exercise Price per Option: $50

● Fair Market Value per Option: $70

● Vesting Period: 4 years

● Expected Forfeiture Rate: 10%

a) Calculate the Total Compensation Expense. b) Determine the Expense Recognized Each

Year. c) Compute the Impact on Net Income. d) Analyze the Impact on Earnings per Share. e)

Evaluate the Effect on Shareholder Equity.