Kaijsa Received 20 NQOs (Each Option Gives Her the Right

question 65

Essay

Kaijsa received 20 NQOs (each option gives her the right to purchase 30 shares of stock for $8 per share)from her employer at the time she started working when the stock price was $9 per share.Now that the share price is $18 per share,she intends to exercise all of her options.If Kaijsa holds the shares for two years and sells them when the market price is $25,what is the amount of the deduction and tax savings her employer will receive (assume the employer's marginal tax rate is 30 percent)?

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Definitions:

Blue Eye-Brown Eye Project

A famous exercise in discrimination conducted by teacher Jane Elliott to teach her students about racism by dividing them based on eye color.

Jane Elliott

Jane Elliott is an American schoolteacher known for her "blue eyes–brown eyes" exercise, which she developed to illustrate the effects of racism and prejudice to her students following the assassination of Martin Luther King Jr.

Conforms

To behave according to the conventional standards, rules, or laws set by a group or society.

Normative Social Influence

It is the influence of other people that leads us to conform in order to be liked and accepted by them.