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The company has a number of stock-based compensation plans including stock options, RSUs, and employee stock purchase plans. The company reports the following activity for
The company has a number of stock-based compensation plans including stock options, RSUs, and employee stock purchase plans. The company reports the following activity for its stock options.
The company also reports the following information in its footnotes.
- Total stock-based compensation expense of $236 million for 2015
- Fair value of stock options granted during 2015 of $4.38 per share and the options strike price was $41.89
- Granted 1,857 thousand performance share units during 2015 with a fair value of $37.99 per share
Question:
Consider the fair value of the stock options granted during the year. If these options vest over 4 years, determine the related compensation expense for 2015.
In millions Shares Outstanding on January 1, 2015 Granted ...... Exercised...... Forfeited/expired .. Outstanding on December 31, 2015. .... 305 13 (44) (8) 266 In millions Shares Outstanding on January 1, 2015 Granted ...... Exercised...... Forfeited/expired .. Outstanding on December 31, 2015. .... 305 13 (44) (8) 266Step by Step Solution
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