At the beginning of the current year, Max Corp. granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. Ignoring taxes, what is the effect on earnings(net income) in the current year after the shares are granted to executives

$90 million

Explanation:

Calculation to determine the effect on earnings (net income) in the current year after the shares are granted to executives

First step is to calculate the fair value of shares represented by RSUs

Using this formula

Fair value of shares represented by RSUs=Fair value per share*Shares represented by RSUs shares granted

Let plug in the formula

Fair value of shares represented by RSUs=$12 *30 million

Fair value of shares represented by RSUs=$360 million

Now let calculate the Effect on earnings

Using this formula

Effect on earnings=Fair value of shares represented by RSUs/Vesting period

Let plug in the formula

Effect on earnings=$360 million/4 years

Effect on earnings=$90 million

Therefore the effect on earnings (net income) in the current year after the shares are granted to executives is $90 million

a

explanation:

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi