The exercise price and market price of stock under a fixed compensatory stock option plan are equal on the grant date. The fair value of the options is greater than the option price. Under the fair value method,
a. compensation expense will be recognized in connection with the option plan.
b. no compensation expense will be recognized in connection with the option plan.
c. deferred compensation will be recognized.
d. no paid-in capital from stock options will be recognized.
A
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In net present value analysis for a proposed capital investment, the expected future net cash flows are reduced to their present values
Indicate whether the statement is true or false
The technology used by early online communities was limited to mostly:
A. instant messaging. B. FTP. C. e-mail. D. bulletin boards.
Which of the following statements is true of strategic planning?
A. It is typically done by first-line managers. B. Implementation of strategies should happen largely through operational planning. C. Evaluation of the results of an organization's strategies should be a continual process. D. It is typically done for a fifteen-year time frame.
To avoid paying the higher corporate tax to a foreign government, a multinational could set the transfer price for its goods entering the country for sale to an affiliate as ________ as possible
A) low B) high C) neutral D) proportional