The computation of the additional shares to be issued on the exercise of stock options assumes that the firm would repurchase common shares on the open market using an amount equal to the sum of all the following except:
a. any cash proceeds from such exercise
b. net incremental shares issued
c. any unamortized compensation expense on those options
d. any tax benefits that would be credited to additional paid-in capital
B
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An understatement of reported net income for the current year would result from
A) an overstatement of ending inventory in the previous period. B) an overstatement of ending inventory in the current period. C) failure to record accrued payroll liabilities. D) failure to record expiration of prepaid insurance.
Panther Company does not want to bear the risk that interest rates may increase in year two of the loan. Aegean Company believes that rates may decrease and they would prefer to have variable debt. So the two companies enter into an interest rate swap agreement whereby Aegean agrees to make Panther's interest payment in 2015 and Panther likewise agrees to make Aegean's interest payment in 2015
The two companies agree to make settlement payments, for the difference only, on December 31 . 2015 . If the interest rate on January 1 . 2015, is 1 . percent, what will be Panther's settlement payment to/from Aegean? a. $6,000 payment b. $6,000 receipt c. $12,000 payment d. $12,000 receipt
A growing firm that delays payments at the end of each period reports larger cash flow from operations each period than if it had not delayed making the cash payments at the end of each period. Which of the following is true?
a. The firm is, in effect, obtaining short-term financing from its suppliers. b. Absent contracts or other agreements that preclude delayed payments, this business practice is legal. c. Sufficiently delayed payments might harm a firm's reputation. d. Sufficiently delayed payments might harm a firm's credit rating. e. All of the above are true.
Revise For Visual Enhancements Revise the following paragraph to add appropriate visual enhancements, such as enumerations or bullets, headings, tables or graphs, and so forth. TO: John Henry, Personnel Director FROM: Lena Rose, Vice President DATE: xxx
SUBJECT: EMPLOYEE COMMUNICATION You will recall the recent telephone survey we conducted on over 200 employees from the past five years to determine why so many of our workers leave our firm to take jobs elsewhere. The analysis of the data gathered on employee terminations has been completed. Our investigation resulted in two findings that are particularly noteworthy. Most workers who leave our firm to work elsewhere do not leave because they believe they are poorly paid. Their primary complaint is that they did not have satisfactory working relationships with their supervisors while working for us. The need for better communication throughout our work force is clear. Accordingly, the following steps will be taken to meet this important need. All supervisors will interview their subordinates once each quarter rather than once each year, as in the past. Also, seminars in management communication skills will be provided for all supervisors and department heads to help them develop more effective communication techniques. We believe these efforts will open channels of communication among our employees and eliminate most of the frustration revealed by former workers in our recent survey. We have also designated an employee relations officer to personally deal with worker complaints of a particularly serious nature. Also, those who come up with ways to improve communication will be rewarded in the form of incentives. Finally, a company newsletter will be published monthly to provide an opportunity for employees to express their views publicly and to improve the flow of information throughout the firm. Appointments to the newsletter staff will be announced shortly. These changes will go into effect on July 1 and will be officially announced to all employees next week. We believe these initiatives will be effective in our efforts to improve communication among employees, upgrade worker morale, and reduce the firm's costly and disruptive employee turnover problems. We will need your support as well as that of other first-level officers if the desired results are to be obtained in this undertaking. Feel free to make suggestions or recommendations that you believe may be helpful. We are hopeful that these changes will be well received by employees at all levels.