Chapter 19 - Chapter 19 Stock award plans The fair value of these awards is equal to the market price of the company's common stock on the date of

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Chapter 19 Stock award plans The fair value of these awards is equal to the market price of the company’s common stock on the date of grant. The compensation associated with a share of restricted stock (or nonvested stock) IS THE MARKET PRICE AT THE GRANT DATE of an unrestricted share of the same stock. This amount is accrued as COMPENSATION EXPENSE over the service period for which participants receive the shares, usually from the date of grant to when the restrictions are lifted (the vesting date). The amount of amount of compensation is measured at the date of grant – at market price on that date. Any market price changes that might occur after that don’t affect the total compensation. Under its restriced stock award plan, universal communication grants 5 million of its 1 par common shares to certain key executives a jan 1, 2011. The shares are subject to forfeirture if employment is terminated within four years. Shares have a current market price of 12 per share. Jan 1, 2011
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This note was uploaded on 05/02/2011 for the course FINANCE 4300 taught by Professor Smith during the Winter '11 term at Cumberland County College.

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Chapter 19 - Chapter 19 Stock award plans The fair value of these awards is equal to the market price of the company's common stock on the date of

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