68 360
Assignments Done
98,7%
Successfully Done
In November 2018

Answer to Question #38515 in Economics of Enterprise for marvi

Question #38515
An executive's employment contract calls for a salary of $400,000 per year, a bonus equal to 2 percent of profits in excess of $10,000,000, and an option to buy 5,000 shares of common stock at a price of $50 per share. the market price of the stock is $70 per share, and the firm's profits for the current year are $12,000,000. Assuming the executive exercises the stock option and then sells the stock, what is the total compensation for the year?
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions