On january 1, 2018, hugh morris comedy club (hmcc) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $24 per share. the stock options are intended as compensation for the next three years. the options are exercisable within a four-year period beginning january 1, 2021, by the executives still in the employ of the company. no options were terminated during 2018. the market price of the common stock was $28 per share at the date of the grant. hmcc estimated the fair value of the options at $6 each. 1% of the options are forfeited during 2019 due to executive turnover. what amount should hmcc record as compensation expense for the year ended december 31, 2019, assuming hmcc chooses the option to record forfeitures as they actually occur?

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.

This year, druehl, inc., will produce 60 comma 000 hot water heaters at its plant in delaware, in order to meet expected global demand. to accomplish this, each laborer at the plant will work 200 hours per month. if the labor productivity at the plant is 0.25 hot water heaters per labor hour, how many laborers are employed at the plant? number of laborers employed by the plant = nothing laborers (round your answer to the nearest whole number).