Question
First Link Services granted 4.2 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The
First Link Services granted 4.2 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $10 per share on the grant date of the restricted stock award. |
1. | Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) |
2. | Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) |
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