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Under its executive stock option plan, Z Corporation granted options on January 1, 2021, that permit executives to purchase 16 million of the company's $1
Under its executive stock option plan, Z Corporation granted options on January 1, 2021, that permit executives to purchase 16 million of the company's $1 par common shares within the next seven years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $19 per share. The falr value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeltures are anticipated. The options explred in 2027 without being exercised. By what amount will Z's shareholder's equity be increased as a result of having granted the options? $80 million. 10 0 0 0 $368 million. $384 million $384 million. $304 million
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