Lance Chips Granted Restricted Stock Units (RSUs) Representing 40 Million

question 190

Multiple Choice

Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $5 per share on the grant date. The total compensation cost pertaining to the restricted stock units is:

• A) $5 million.
• B) $40 million.
• C) $50 million.
• D) $200 million.

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Definitions:

Boring Task

A task that is perceived as monotonous, repetitive, uninteresting, or lacking stimulation, often leading to disengagement or lack of motivation.

Autonomic Nervous System

A part of the nervous system that controls involuntary actions of the organs, glands, and blood vessels, managing functions such as heart rate, digestion, and respiratory rate.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Arousal Level

describes the physiological and psychological state of being awake and reactive to stimuli, varying from low (unstimulated) to high (fully alert).