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    Eagle Builders Inc Initiated A Stock Option Plan For Its

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    Taimour Hassan
    Eagle Builders initiated a stock option plan on January 1st for its 1,200 employees, granting each 10 options to buy 10 shares of common stock at $45 per share, the market price. A model estimated the fair value at $83 per share. The options vest after 3 years and expire after 6 years.

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    Eagle Builders Inc Initiated A Stock Option Plan For Its

    Uploaded by

    Taimour Hassan
    76 views1 page
    Eagle Builders initiated a stock option plan on January 1st for its 1,200 employees, granting each 10 options to buy 10 shares of common stock at $45 per share, the market price. A model estimated the fair value at $83 per share. The options vest after 3 years and expire after 6 years.

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    Eagle Builders Inc Initiated a Stock Option Plan for Its

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    Eagle Builders initiated a stock option plan on January 1st for its 1,200 employees, granting each 10 options to buy 10 shares of common stock at $45 per share, the market price. A model estimated the fair value at $83 per share. The options vest after 3 years and expire after 6 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    76 views1 page

    Eagle Builders Inc Initiated A Stock Option Plan For Its

    Uploaded by

    Taimour Hassan
    Eagle Builders initiated a stock option plan on January 1st for its 1,200 employees, granting each 10 options to buy 10 shares of common stock at $45 per share, the market price. A model estimated the fair value at $83 per share. The options vest after 3 years and expire after 6 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Eagle Builders Inc initiated a stock option plan for its

    #3289
    Eagle Builders, Inc. initiated a stock option plan for its employees on January 1 of the current
    year. The terms of the plan grant each employee 10 options to acquire 10 shares of the
    company’s $ 1 par value, common stock at an exercise price of $ 45 per share. The market
    price on the date of the grant is also $ 45 per share. On the grant date, a binominal model
    estimated the fair value of the options at $ 83 per share. The option plan permits exercise only
    after three years of service and all options expire after six years. On the date of the grant, Eagle
    employed 1,200 employees. The options are equity-classified awards.Requireda. Assuming that
    the initial vesting probability is 100%, prepare the journal entries necessary:• To record the
    grant of the options.• To record the recognition of compensation expense each year assuming
    that the fair value of the options was as follows:• $ 75 per share at the end of the year of the
    grant.• $ 69 and $ 81 per share at the end of year 2 and year 3, respectively, following the year
    of the grant.b. Repeat the requirements in part a, assuming that the estimated vesting
    probabilities are:• 80% at the beginning of year 1.• 65% at the beginning of year 2.• 75% at the
    beginning of year 3.c. Repeat the requirements in part a, assuming that Eagle grants the
    options to acquire the company’s redeemable preferred shares rather than its common
    stock.View Solution:
    Eagle Builders Inc initiated a stock option plan for its

    ANSWER
    http://paperinstant.com/downloads/eagle-builders-inc-initiated-a-stock-option-plan-for-its/

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