On january 1, year 1, manning company granted 97,000 stock options to certain executives. the options are exercisable no sooner than december 31, year 3, and expire on january 1, year 6. each option can be exercised to acquire one share of $1 par common stock for $8. an option-pricing model estimates the fair value of the options to be $4 on the date of grant. at the time of issuance, no estimate of forfeitures is made. if unexpected turnover in year 2 caused the company to now estimate that 20% of the options would be forfeited, what amount should manning recognize as compensation expense for year 2?

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Abc factory produces 24,000 units. the cost sheet gives the following information: direct materials rs. 1,20,000direct labour rs. 84,000variable overheads rs. 48,000semi variable overheads rs. 28,000fixed overheads rs. 80,000total cost rs. 3,60,000presently the product is sold at rs. 20 per unit.the management proposes to increase the production by 3,000 units for sales in the foreign market . it is estimated that semi variable overheads will increase by rs. 1,000. but the product will be sold at rs. 14 per unit in the foreign market. however, no additional capital expenditure will be incurredq-1. what is present profit of the company ? q-2. what is proposed profit of the company in new market? q-3.what is suggestion for new makret proposal whether proposal accept or not

You need $87,000 in 12 years. required: if you can earn .54 percent per month, how much will you have to deposit today?