What affect would this option grant have on bays accounts


Problem

Bay's footnote regarding employee stock compensation details the grant of 2 million options during the year, the fair-value of which was computed as $7.18 .

If the options have, on average, a four-year vesting schedule and the company faces a 35% tax rate on income, what affect would this option grant have on Bay's accounts for the year?

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Financial Accounting: What affect would this option grant have on bays accounts
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