First Link Services granted 4.2 million of its $1 par common shares to executives, subject...
60.1K
Verified Solution
Link Copied!
Question
Accounting
First Link Services granted 4.2 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $10 per share on the grant date of the restricted stock award. 1. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? 2. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? Note: For all requirements, enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
First Link Services granted 4.2 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $10 per share on the grant date of the restricted stock award. 1. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? 2. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? Note: For all requirements, enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50) 