During 2015,Furry Kittens Inc

question 2

Essay

During 2015,Furry Kittens Inc.(FKI)had three series of employee stock options outstanding,details of which follow:
• Options A entitle employees to purchase 60,000 ordinary shares for $58.00 each.This series of options was granted on February 1,2013 and expires on June 30,2015.
• Options B entitle employees to purchase 10,000 ordinary shares for $62.00 each until December 31,2016 and $59.00 thereafter.This series of options was granted on June 1,2012 and expires on December 31,2019.
• Options C entitle employees to purchase 45,000 ordinary shares for $57.00 each.This series of options was granted on April I,2015 and expires on December 31,2018.
The average market price of FKI's ordinary shares for the year ended December 31,2015 was $60.00.
Requirements:
a.For each of the options series,indicate whether they are dilutive or anti-dilutive in nature in 2015 and provide the reason why.
b.For each of the options series that are dilutive,determine the number of incremental shares to be notionally issued.

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Definitions:

Managerial Responsibility

The obligations and duties of managers to make decisions, guide actions, and oversee the welfare and performance of their team and organization.

Optimization

The process of making something as effective or functional as possible.

Universal Principles of Management

Fundamental concepts and practices that are widely applied across various industries and organizations to effectively lead and manage teams.

Henry Fayol

A French engineer and scholar, recognized as one of the pioneers of modern management methodologies, noted for his development of a general theory of business administration.