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Required information The following information applies to the questions displayed below Antonio received 40 ISOs (each option gives him the right to purchase 20 shares

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Required information The following information applies to the questions displayed below Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share) at the time he started working for Zorro Corporation six years ago. Zorro's stock price was $3 per share at the time. Now that Zorro's stock price is $50 per share, Antonio intends to exercise all of his options and immediately sell all the shares he receives from the options exercise. (Enter all amounts as positive values. Leave no answers blank. Enter zero if opplicable) c. What are the net cash flow effects of these transactions to Antonio, assuming his ordinary marginal rate is 24 percent and his long- term capital gains rate is 15 percent? Cash Flow Consequences Grant date Exercise date & sale date d. What are the net cash flow effects to Zorro Corporation resulting from Antonio's option exercise if Zorro's marginal tax rate is 21 percent? Cash Flow Grant date Exercise date & sale date

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