First Link Services granted $12$ million of its $$1$ par common

shares to executives, subject to forfeiture if employment is

terminated within five years. The common shares have a market price

of $$6$ per share on the grant date of the restricted stock

award.

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$1.$Ignoring taxes, what is the total

compensation cost pertaining to the restricted shares?

$2.$Ignoring taxes, what is the effect on

earnings in the year after the shares are granted to

executives?

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$($For all requirements, enter your answer in millions

rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as

$5\mathrm{.}50).)$

$$