Common shares to executives


FX Services granted 16.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. The common shares have a market price of $8 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?

A) $ 32.0 million.

B) $ 128.0 million.

C) $ 0 million.

D) $ 16.0 million.

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Finance Basics: Common shares to executives
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