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Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 24 million
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 24 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date $30 per share ($120 per option). Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 24 million options, estimated by an appropriate option pricing model, is $45 per option. Ignore income tax. ... Wilson's compensation expense in 2021 for these stock options was: (Round your answer to nearest whole dollar amount.) Multiple Choice $270 million. $0. Getaway Travel Company reported net income for 2021 in the amount of $55,000. During 2021, Getaway declared and paid $4,500 in cash dividends on its nonconvertible preferred stock. Getaway also paid $15,000 cash dividends on its common stock. Getaway had 45,000 common shares outstanding from January 1 until 15,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share? (Round final answers to 2 decimal places.) Multiple Choice $0.48. $0.52 O $0.57
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