Chapter 19 Day 1 - Brief Exercise 192 $10 x 16 million =...

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Brief Exercise 19–2 $10 fair value per share x 16 million shares represented by RSUs shares granted = $160 million fair value of shares represented by RSUs The $160 million total compensation is expensed equally over the four- year vesting period, reducing earnings by $40 million each year.
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Brief Exercise 19–7 The estimate of the total compensation would be: 100,000 x $6 = $600,000 options fair estimated expected value total to vest compensation One-third of that amount, or $200,000, will be recorded in each of the three years. Brief Exercise 19–12 (amounts in millions, except per share amount) net preferred income dividends Earnings $426 – $16 $410 Per Share —————————————————— = —— = $.50 820 820 common shares Since the preferred stock is cumulative, the dividends (8% x $200 million = $16 million) are deducted even though no dividends were declared. There are no potential common shares, so a single calculation of EPS is appropriate.
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Exercise 19–1 Requirement 1 $5 fair value per share x 16 million shares granted
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