Rick Recently Received 500 Shares of Restricted Stock from His

question 10

Essay

Rick recently received 500 shares of restricted stock from his employer,Crazy Corporation,when the share price was $5 per share.Rick's restricted shares vested three years later when the market price was $12.Rick held the shares for a little more than a year and sold them when the market price was $15.What is the amount of Rick's income on the vesting date? Assuming a marginal tax rate of 30 percent,what is Rick's tax on the restricted stock?

Analyze the effect of taxes on market equilibrium and how they impact quantities sold.

Calculate effects of subsidies on market prices to achieve a new market equilibrium.

Understand the relationship between supply and demand functions.

Calculate equilibrium quantities given changes in supply and demand.

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