GEO Inc. granted executive stock options on January 1, 2022,…
GEO Inc. granted executive stock options on January 1, 2022, that permit executives to purchase 50 million of the company’s no-par common shares within the next 8 years, but not before December 31, 2025 (the vesting date). The exercise price was the market price of the shares on the date of grant ($17 per share). The fair value of the options, estimated by an appropriate option pricing model, was $8 per option. No forfeitures are anticipated. On September 30, 2026, the balance in the PIC-Stock Options account was $400 million. On that date, half of the options are exercised, when the market price is $25.50 per share. By what amount will GEO Inc.’s Common Stock increase by this exercise?
Read DetailsThe corporate charter of KNIGHT Company authorized the issua…
The corporate charter of KNIGHT Company authorized the issuance of 15 million, $1 par common shares. During 2024, its first year of operations, KNIGHT had the following transactions: February 15 Sold 8 million shares at $10 per share July 8 Retired 3 million shares at $17 per share November 22 Sold 2 million shares at $21 per share What amount should KNIGHT report as Paid-in-Capital—Excess of Par, in its December 31, 2024, balance sheet (in millions)?
Read DetailsPANTHER LLP started the year with a cash balance of $1,255,0…
PANTHER LLP started the year with a cash balance of $1,255,000. During the year, it reported the following: – $3,690,000 Cash flow provided by Operating activities – $710,000 Cash flow provided by Investing activities – $155,000 Cash flow used for Financing activities What was the ending cash balance?
Read DetailsOn January 1, 2024, PC Company had 80,000 shares of common s…
On January 1, 2024, PC Company had 80,000 shares of common stock outstanding and 30,000 shares of 10%, $30 par, cumulative preferred stock outstanding. It also had stock options giving key personnel the option to buy 20,000 common shares at $25 each. Net income for 2024 was $215,000. The income tax rate is 25%. During 2024, the average market price of the common shares was $40. Compute the 2024 diluted earnings per share for PC Company (rounded):
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