When are incentive stock options not recognized as compensation expense?
d Under the intrinsic value method, compensation expense resulting from an incentive stock option is generally a. not recognized because no excess of market price over the option price exists at the
What are the different types of stock option plans?
a. stock appreciation rights plan. b. incentive stock option plan. c. nonqualified stock option plan. d. Taxes would be paid in all of these. b. share-based liability awards.
Does the plan offer any substantive option feature?
The plan offers no substantive option feature. d. All of these are characteristics. d Under the intrinsic value method, compensation expense resulting from an incentive stock option is generally
What is the intrinsic value of stock options?
The intrinsic value of a stock option is the difference between the market price of the stock and the exercise price of the options at the grant date. T or F Under the fair value method, companies compute total compensation expense based on the fair value of options on the date of exercise. T or F
Which of the following is not a characteristic of an employee stock purchase plan quizlet?
Which of the following is not a characteristic of an employee stock-purchase plan? It is not open to almost all full-time employees. not recognized if the market price does not exceed the option price at the date of grant.
Which of the following is an advantage of restricted stock plan?
Which of the following is an advantage of restricted stock plans? Restricted stock may become worthless. Restricted stock can be sold before vesting occurs. Restricted stock better aligns the employee incentives with the companies' incentives.
When accounting for stock warrants issued with other securities How should the warrant and the security be treated in accounting if the warrant is detachable?
When accounting for stock warrants issued with other securities, how should the warrant and the security be treated in accounting if the warrant is detachable? They should be treated as two securities at issuance and one security if the stock warrant is redeemed.
Which of the following is correct regarding the nature of restricted stock?
Which of the following is correct regarding the nature of restricted stock? The shares can only be sold back to the issuing company and not outside investors. The shares typically are contingent on the continued employment of the awardee.
What are the benefits of RSUs?
Advantages. RSUs provide an incentive for employees to stay with a company for the long term and help it perform well so that their shares increase in value.
What's the difference between warrants and options?
A stock warrant represents the right to purchase a company's stock at a specific price and at a specific date. A stock warrant is issued directly by a company to an investor. Stock options are purchased when it is believed the price of a stock will go up or down. Stock options are typically traded between investors.
What are warrants on stock?
A stock warrant is a derivative contract between a public company and an investor. A warrant gives the holder the right to buy or sell shares of stock to or from the issuing public company at a specified price before a specified date. Holders of warrants are under no obligation to buy or sell the underlying stocks.
How should the proceeds from the sale of debt with detachable stock warrants be allocated between the two securities?
The proceeds from the sale of debt with detachable stock warrants should be allocated between the two securities based on the: aggregate fair market value of the bonds and the warrants.