Question
Mr. Ankit received 1000 ESOPs at Rs.50 each. The fair
value of the shares is Rs.120 at vesting time and Rs.130 at exercise time. What is the value of ESOPs for Mr. Ankit?Solution
Value of ESOP = fair value at exercise time – cost of ESOP                                    = Rs.130-Rs.50 per share                                    = Rs.80 per share Total value = 80*1000 shares = Rs.80,000
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