Suppose That a Function Satisfies the Following Equation for Small

question 62

Essay

Suppose that a function satisfies the following equation for small values of : .
Also, and .
A) Find the linearization of at .
B) Replace by its linearization and find a quadratic equation for .
C) Estimate the roots of the quadratic equation in to 4 decimal digits using linearization for .

• A) Find the linearization of at .
• B) Replace by its linearization and find a quadratic equation for .
• C) Estimate the roots of the quadratic equation in to 4 decimal digits using linearization for .

Understand the calculation of weighted average number of shares for basic earnings per share.

Know the compromise and choices offered to companies by SFAS No. 123 regarding stock options.

Recognize the different periods associated with stock options such as vesting period and holding period.

Understand the accounting treatment for compensatory stock option plans.