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On January 1, 2021, ABC grants options that permit key executives to acquire 6 million of the company's $1 par common shares within the next
On January 1, 2021, ABC grants options that permit key executives to acquire 6 million of the company's $1 par common shares within the next 6 years, but not before December 31, 2024. The exercise price is the market price of the shares on the date of grant, $40 per share. The fair value of the options, estimated by an appropriate option pricing model, is $7 per option.
If the forfeiture rate is estimated to be 5% what is the first year compensation expense?
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