Save & Ex Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $35 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $8 per option. What would be the total compensation indicated by these options? Multiple Choice $8 million. $3 million. $35 million. $27 million.

Save & Ex Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $35 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $8 per option. What would be the total compensation indicated by these options? Multiple Choice $8 million. $3 million. $35 million. $27 million.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer is $60 million. Please explain the reasoning and calculations
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