The Date on Which Total Compensation Expense Is Computed in a Share

question 18

Multiple Choice

The date on which total compensation expense is computed in a share option plan is the date

• A)of grant.
• B)of exercise.
• C)that the market price coincides with the option price.
• D)that the market price exceeds the option price.

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Definitions:

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares.

Dividend Per Share

The amount of dividend that is paid out for each share of stock held by shareholders.

Market Price

The current value at which an asset, commodity, or service can be bought or sold in a marketplace.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the attractiveness of a stock.