On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 12. V expects that all options will vest. After the 4 year period, 80% of the executives are still in the employ of V Co. and 7 executives exercised their option during the 1st year of exercise period and purchased the shares for P 17 each. Exercise period is for 3 years from the end of the vesting period.The par value of each share is P 15. required: (a)How much is the compensation expense for the 3rd year in the vesting period if 2 of the executives left in the 3rd year of the vesting period? (B)How much is the share options outstanding as of the 2nd year in the exercise period assuming out of the total 7 executives who exercised their options, 3 and 2 executives exercised their options in the 1st year and 2nd year, respectively.
On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 12. V expects that all options will vest. After the 4 year period, 80% of the executives are still in the employ of V Co. and 7 executives exercised their option during the 1st year of exercise period and purchased the shares for P 17 each. Exercise period is for 3 years from the end of the vesting period.The par value of each share is P 15.
required:
(a)How much is the compensation expense for the 3rd year in the vesting period if 2 of the executives left in the 3rd year of the vesting period?
(B)How much is the share options outstanding as of the 2nd year in the exercise period assuming out of the total 7 executives who exercised their options, 3 and 2 executives exercised their options in the 1st year and 2nd year, respectively.
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