标题: Without referring to your notes.... [打印本页] 作者: sabaruch 时间: 2011-7-11 19:28 标题: Without referring to your notes....
A firm grants employee stock options to a director. The director receives 100,000 options with a strike price of $10 per share. The shares currently trade at $8 in the market. The firms financial controller has valued these options using a BSM model and the model is telling him the options are worth $4 each.
FASB has issued guidance on how to record the granting of these options on the firms financial statements.
How would they be recorded before, and after FASB issued this guidance.作者: tikfed 时间: 2011-7-11 19:28
Compensation expense spread over the vesting period? It doesn't seem the FASB guidance would make a difference since there were no changes mentioned in the fact pattern.
NO EXCUSES作者: tianxin 时间: 2011-7-11 19:28
Incorrect.作者: xilige 时间: 2011-7-11 19:28
before - 0. Strike price=10, current price=8. No value.
Now = 100000*4 spread over the vesting period. e.g. if 4 years -> 100000 per year.
CP作者: needhelp1700 时间: 2011-7-11 19:28
cpk123 Wrote:
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> before - 0. Strike price=10, current price=8. No
> value.
>
> Now = 100000*4 spread over the vesting period.
> e.g. if 4 years -> 100000 per year.
Well done sir.作者: troymo 时间: 2011-7-11 19:28
Hmm...I guess I should adjust my line of thinking. I was assuming they were being recorded according to current US GAAP and FASB issued another piece of guidance which wasn't specified.
NO EXCUSES作者: YAhmed 时间: 2011-7-11 19:28
Another easy one...
Analysis of the capital structure, paying particular attention to PIK issues & zero-coupon bonds is of particular importance when analyzing what? And why?作者: profil 时间: 2011-7-11 19:28
Yes, PIK is payment in kind.
You're on the right track, but what am I trying to determine?作者: zephyranalyst 时间: 2011-7-11 19:28
no, it is depreciating.
Cap rate = (R-G)
R=12
so G = -4
since (R-G)=16
CP作者: Uranus08 时间: 2011-7-11 19:28
A True
B
Revenues: $25,000,000
COGS: $17,000,000
(-3 synergy)
Gross Profit: $8,000,000
Operating expenses: $2,900,000
(-100k ceo pay)
EBIT: $5,100,000
Taxes at 40% $2,040,000
Net Income: $3,060,000
3 28.8%作者: Kapie 时间: 2011-7-11 19:28
no wait the discount is 24.12%
and they are a strategic buyer
my brain hurts
Edited 1 time(s). Last edit at Friday, April 30, 2010 at 08:38AM by kurupt1.作者: liquidity 时间: 2011-7-11 19:28
why zero-coupon bonds is of particular importance when analyzing capacity to repay for a high yield issuer???作者: WarrenB1 时间: 2011-7-11 19:28
neilzuo Wrote:
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> why zero-coupon bonds is of particular importance
> when analyzing capacity to repay for a high yield
> issuer???
It is because over the life of the bond more liability accrues with PIK and zero-coupon securities. As this accrues and the increased liability is incorporated into the debt structure it will negatively affect the firms ability to repay senior debt.作者: Rasec 时间: 2011-7-11 19:28
