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?

    A Rs.40,000 Correct Answer Incorrect Answer
    B Rs. 60,000 Correct Answer Incorrect Answer
    C Rs. 80000 Correct Answer Incorrect Answer
    D Rs. 70000 Correct Answer Incorrect Answer
    E Rs. 50000 Correct Answer Incorrect Answer

    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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