taxon corp. granted restricted stock units (rsus) representing 60 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. after the recipients of the rsus satisfy the vesting requirement, the company will distribute the shares. the common shares had a market price of $11 per share on the grant date. ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?

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04-11-2022
Business

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taxon corp. granted restricted stock units (rsus) representing 60 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. after the recipients of the rsus satisfy the vesting requirement, the company will distribute the shares. the common shares had a market price of $11 per share on the grant date. ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?

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