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In 2 0 1 6 ( year 0 ) , Jessee exercised a stock option by paying $ 1 0 0 per share for 2
In year Jessee exercised a stock option by paying $ per share for shares of ABC stock. The market price at date of exercise was $ per share. In Jessee sold the shares for $ per share. Assuming that Jessee is in the percent tax bracket, has a percent capital gains rate, and uses a percent discount rate, compute the NPV of the cash flows from the exercise and sale if: Use Appendix A Required: a The stock option was nonqualified. b The stock option was an ISO. Complete this question by entering your answers in the tabs below. Required Compute the NPV of the cash flows from the exercise and sale if the stock option was nonqualified. Note: Round your intermediate calculations to the nearest whole dollar amount. NPV
In year Jessee exercised a stock option by paying $ per share for shares of ABC stock. The market price at date of exercise was $ per share. In Jessee sold the shares for $ per share. Assuming that Jessee is in the percent tax bracket, has a percent capital gains rate, and uses a percent discount rate, compute the NPV of the cash flows from the exercise and sale if: Use Appendix A
Required:
a The stock option was nonqualified.
b The stock option was an ISO.
Complete this question by entering your answers in the tabs below.
Required
Compute the NPV of the cash flows from the exercise and sale if the stock option was nonqualified.
Note: Round your intermediate calculations to the nearest whole dollar amount.
NPV
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