At the End of 2018, What Is the Maximum Number

question 22

Essay

At the end of 2018, what is the maximum number of shares that could possibly be issued if all stock options and awards are exercised? Explain why V Co. used only 3.3 million in its computation for 2018.

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Definitions:

Total Loss

A situation in insurance or business where the cost of repair or recovery exceeds the value of the asset or investment.

Long Run

A period in economics during which all factors of production and costs are variable, and firms can adjust all inputs.

Efficient Output

The level of production that maximizes a firm's profits while minimizing its costs, often associated with where marginal cost equals marginal revenue.

Lowest Price

The minimum cost at which a product or service can be bought, often sought after in competitive markets.