Chapter 19 Day 1

# 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.
Exercise 19–1 Requirement 1 \$5 fair value per share x 16 million shares granted

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