Question
FoX Inc. granted options for 200,000, $1 par common shares on January 1 Year 2020 with an exercise price of $15 and market price of
FoX Inc. granted options for 200,000, $1 par common shares on January 1 Year 2020 with an exercise price of $15 and market price of $10 per common share. The options cannot be excercised before January 1 Year 2022 and expire on December 31, year 2024. Each option is worth $8 at grant date based on an appropriate option pricing model. On January 15, 2022 employees exercise 85% of the options when market price of the stock is $22 and the remaining options expire.
How much cash will Fox debit for these options during 2020 through 2024?
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The cash debited for the options during 2020 through 2024 will depend on the timing of the option ex...
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
