FX Services granted 14.0 million of its $1 par common shares to executives, subj
ID: 2480138 • Letter: F
Question
FX Services granted 14.0 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 one decimal place.)
FX Services granted 14.0 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 one decimal place.)
Explanation / Answer
14 X $9 = $126 mil
divide by 2 years to get per year cost.
126/ 2 = 63
$63 million is the answer
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