8ption plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to urchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting ate). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated an appropriate option pricing model, is $5 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% the stock options. empute the amaunt of compensation expense for 2022 and 2023. (Enter your answers in millons (Le., 10,000,000 should be tered as 10).) Compensation expense (S in millions) 22 23
8ption plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to urchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting ate). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated an appropriate option pricing model, is $5 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% the stock options. empute the amaunt of compensation expense for 2022 and 2023. (Enter your answers in millons (Le., 10,000,000 should be tered as 10).) Compensation expense (S in millions) 22 23
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Under its executive stock option plan, Natilonal Corporation granted 12 million options on January 1, 2021, that permit executives to
purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting
date). The exercise price is 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, is $5 per option. Suppose that unexpected tumover during 2022 caused the forfelture of 5%
of the stock options.
Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions (L.e., 10,000,000 should be
entered as 10).)
Compensation expense
(S in millions)
2022
2023
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