The Board of Directors of Pearson Corporation is considered a restricted stock award grant to its senior management. In considering the grant, the Board asks whether an increase in the following features will increase, decrease, or have no effect on the total amount of stock-based compensation expense the firm will record:

• Current Stock Price
• Forfeiture Rate
• Service term

Higher Stock Price: Increase Total Expense, Higher Forfeiture Rate: No Effect on Total Expense, Longer Service Term: No Effect on Total Expense

Higher Stock Price: No Effect, Higher Forfeiture Rate: Increase Total Expense, Longer Service Term: Increase Total Expense

Higher Stock Price: No Effect, Higher Forfeiture Rate: Increase Total Expense, Longer Service Term: No Effect on Total Expense

Higher Stock Price: Increase Total Expense, Higher Forfeiture Rate: Increase Total Expense, Longer Service Term: No Effect on Total Expense

Higher Stock Price: Increase Total Expense, Higher Forfeiture Rate: Decrease Total Expense, Longer Service Term: No Effect on Total Expense