Day 7 - Stock Compensation

Question 1

Equation: Compensation Cost for restricted share plans: Total Compensation Cost equals?

Answer 1

= Market Price of the Shares on date of Grant × # of Restricted Shares Awarded

Make sure to divide by number of years it takes the shares to vest

MCQ-08248

Question 2

In a compensatory stock option plan for which the grant and exercise dates are different, the stock options outstanding account should be reduced at the:

Answer 2

The Exercise Date

MCQ-01099