FX Services granted 15.5 million of its $1 par common shares to executives, subj

Question

FX Services granted 15.5 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.)

$ 139.5 million.

$ 0 million.

$ 69.8 million.

$ 15.5 million.

FX Services granted 15.5 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.)

Explanation / Answer

$69.80 million

(15.5 * 9/2) = $69.75 or 69.8 million

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