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Hazel received 20 NQOs (each option gives her the right to purchase 10 shares of stock for $7 per share)at the time she started working when the stock price was $14 per share.Now that the share price is $20 per share,she intends to exercise all of her options.If Hazel holds the shares for two years and sells them when the market price is $25,how much gain will Hazel recognize on the sale and how much tax will she pay assuming her marginal tax rate is 25 percent?
Potential Agreement
A possible future agreement between parties outlining conditions that are satisfactory to all involved entities.
Good Faith
An honest intention to act without taking an unfair advantage over another party.
High Process Control
A situation where there is strict regulation and management of the procedures and methods utilized in production or in carrying out tasks.
Third-party Conflict
A type of conflict resolution involving an outside party who intervenes to help the conflicting parties reach a resolution.
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