On January, 2018, Pandora Corp. granted to 600 employees, 100 share options each exercisable after

3 years, subject to the employees staying with the company until the end of 2020. Options can be

exercised (at a rate of four options to one share) if share price increases from P40 at the beginning of

2018 to above P60 at the end 2020. The exercise price is P32 (par value P10). The share options can

be exercised at any time during the next five years, that is by the end of 2021. The company

estimates the fair value of the share options on the grant date at P5 per option. This estimate takes

into account the possibility that the share price will exceed P60 per share at the end of 2020, thus

options are exercisable and the possibility that the share price will not exceed P60 at the end of 2020,

thus the share options will be forfeited.

The following information are deemed relevant:

Fair value

of Shares

Fair

value of

Options

Actual number of

employees actually

leaving the company

during the year

Estimated number of

additional employees

expected to leave the

company by the end

of 2020

Dec. 31. 2018484545

Dec. 31, 20194432035

Dec. 31, 202056030 -

Requirements:

63. What is the ordinary share options outstanding as of December 31, 2019?

64. What is the compensation expense in 2020?

65. What is the effect to total APIC assuming that 60% of the options ultimately becoming

exerciseable by the end of the vesting period were eventually exercised?