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FX Services granted 14.0 million of its $1 par common shares to executives, subj

ID: 2480138 • Letter: F

Question

FX Services granted 14.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to one decimal place.)

FX Services granted 14.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to one decimal place.)

Explanation / Answer

14 X $9 = $126 mil

divide by 2 years to get per year cost.

126/ 2 = 63

$63 million is the answer