Midterm 2 Fall 2020 revised 00 Under its executive stock option plan, JudyCorp granted options...
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Midterm 2 Fall 2020 revised 00 Under its executive stock option plan, JudyCorp granted options on January 1, 2021, that permit executives to purchase 25 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is $19 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option No forfeitures were anticipated, however, unexpected turnover during 2022 caused the forfeiture of 8% of the stock options. Ignoring taxes, what is the effect on earnings in 2022? (Round your answer to the nearest dollar amount.) 4 Mulmolo Choice $44 millon $43 million $370 million 535 million
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