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need help with accounting question please see attach Assume Intel Corporation reported the following in its 2008 10K report. ShareBased Compensation Effective January 1, 2006,
need help with accounting question please see attach
Assume Intel Corporation reported the following in its 2008 10K report. ShareBased Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R) . . . Sharebased compensation recognized in 2008 was $852 million ($952 million in 2007 and $1,375 million in 2006). We use the BlackScholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows: Stock Options Estimated fair values Expected life (in years) 2008 $ 5.74 2007 2006 $ $ 5.21 5.79 5.0 5.0 4.9 Risk-free interest rate 3.0% 4.5% 4.9% Volatility 37% 26% 27% Dividend yield 2.7% 2.0% 2.0% Additional information with respect to stock option activity is as follows: (In Millions, Except Per Share Amounts) Number of Shares Weighted Average Exercise Price December 31, 2005 899.9 $26.71 52.3 $20.04 Exercises (47.3) $12.83 Cancellations and forfeitures (65.4) $28.07 December 30, 2006 839.5 $26.98 24.6 $22.63 (132.8) $19.78 Grants Grants Exercises Cancellations and forfeitures December 29, 2007 (65.4) $31.97 665.9 $27.76 27.9 $21.81 Exercises (38.6) $19.42 Cancellations and forfeitures (42.8) $31.14 Grants Expirations December 27, 2008 (2.4) 610.0 $25.84 $27.79 (a) What did Intel expense for sharebased compensation for 2008? Answer 0 ($ million) How many options did Intel grant in 2008? Answer 0 (million shares) Compute the fair value of all options granted during 2008. (Round your answer to one decimal place.) Answer 0 ($ million) c) How many options were exercised during 2008? Answer 0 million shares Estimate the cash that Intel received from its employees when these options were exercised. (Round your answer to one decimal place.) Answer 0 ($ million) (d) What was the intrinsic value per share of the options exercised in 2008? (Hint: Assume that Intel grants options atthemoney.) $Answer 0 per share If employees who exercised options in 2008 immediately sold them, what "profit" did they make from the shares? (Round your answer to one decimal place.) Answer 0 ($ million) The tax benefit that Intel will receive on the options exercised is computed based on the intrinsic value of the options exercised. Estimate Intel's tax benefit from the 2008 option exercises assuming a tax rate of 34.7%. (Round your answer to one decimal place.) Answer ($ million) (f) What was the average exercise price of the options that expired in 2008? $Answer per shareStep by Step Solution
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