Q1. Which of the following statements about the methods of valuing employee stock options is least accurate? A) With the fair value method, compensation expense is allocated in the income statement for the period between the grant date and the vesting date. B) With either method, the offset to compensation expense recognized is an increase in paid-in capital. C) With the intrinsic value method, once the options are in-the-money, compensation expense is recognized on the income statement.
Q2. Which of the following statements about stock appreciation rights, performance stock, and phantom stock is most accurate? A) Performance stock cannot be sold by the employee until vesting has occurred. B) Phantom stock payoffs are based on the performance of the firm’s actual shares. C) Stock appreciation rights never have any dilution effect on the existing shareholders.
Q3. In determining the fair value of a stock option, which of the following statements is most appropriate? A) Absent a market-based instrument, U.S. GAAP and IFRS prefer firms to use the Black-Scholes option-pricing model. B) A higher than expected dividend yield will decrease the estimated fair value. C) A lower risk-free rate will usually increase the estimated fair value.
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发表于 2009-1-17 14:41
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