Under Its Executive Stock Option Plan, W Corporation Granted Options

question 5

Multiple Choice

Under its executive stock option plan, W Corporation granted options on January 1, 2018, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date) . The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2021, when the market price is $21 per share. By what amount will W's shareholder's equity be increased when the options are exercised?

• A) $60 million.
• B) $270 million.
• C) $315 million.
• D) $330 million.

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Definitions:

Interactional Synchrony

A coordinated interaction between caregiver and infant, where both adjust their actions and emotions in response to the other, facilitating social and emotional development.

Modeling

The creation of a representation of a real-world or hypothetical situation or system to analyze, interpret, or predict outcomes.

Interactional Synchrony

A phenomenon where individuals, especially infants and their caregivers, mirror each other's facial expressions, gestures, or movements, fostering emotional connection and communication.

Secure Attachment

A healthy emotional bond formed in early childhood, where an individual feels confident and supported enough to explore their environment.