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Viola Ltd has granted each of its 10 senior executives a choice between receiving a cash payment equivalent to 1000 shares or receiving 1200 share. The grant is conditional on the completion of three years’ service with the company. If the share alternative is chosen, the shares must be held for two years after vesting date. At grant date the company’s share price is £25 per share. At the end of years 1, 2 and 3 the share price is £27, £28 and £30 respectively. The company does not expect to pay dividends in the next three years. After taking into account the effect of post-vesting transfer restrictions the company estimates the grant-date fair value of the share alternative is £24 per share.
-What is the liability component at the end of year 1?
Representative Survey
A study or poll designed to reflect the attitudes, opinions, or characteristics of a larger population, typically by sampling a statistically valid subset of that population.
Street Harassment
Unwelcomed sexual advances.
Legal Recourse
The ability to seek and obtain a legal remedy or relief from a court of law for grievances or disputes.
Attacker
A person or entity that aggressively attempts to harm or compromise another.
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