Market price of stock and pre-established price


Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, that entitles executives to receive cash at the date of exercise for the difference between the market price of stock and the pre-established price of $24 on 5,050 SARs. The required service period is 2-years. The fair value of the SAR's are determined to be $6 on December 31, 2012, and $13 on December 31, 2013.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Market price of stock and pre-established price
Reference No:- TGS015912

Expected delivery within 24 Hours