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9. HW5 - 8 points a. What is compensation expense...

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9. HW5 - 8 points a. What is compensation expense related to the stock option plan in fiscal 2008 (year ended 12/31/08)? b. What would the effect on cash flows be on December 15, 2010, if 12,000 of the options were exercised when the fair market value of the stock is $44 per share (provide a dollar amount and, if the amount is not zero, indicate whether it is a cash inflow or outflow and whether it would appear as an operating, investing, or financing activity in the cash flow statement)? c. What would the effect on stockholders? equity be on December 15, 2010 if 12,000 of the options were exercised when the fair market value of the stock is $44 per share? Provide a dollar amount and state increase or decrease.

 

Paper#5158 | Written in 18-Jul-2015

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