Martin Corp

question 64

Multiple Choice

Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 10% discount. During 2018, employees purchased 8 million shares; during this same period, the shares had a market price of $15 per share at the end of the year. Martin's 2018 pretax earnings will be reduced by:

• A) $12 million.
• B) $108 million.
• C) $120 million.
• D) $0.