Ms Morris, a Divisional Manager, Is Compensated as Follows

Essay

Ms. Morris, a divisional manager, is compensated as follows:
Ms. Morris's division reported operating income of £10,000,000 this year. On December 1, Ms. Morris exercised her stock option when the stock was selling for £15 per share.
Required:

a.
Determine the amount of Ms. Morris's bonus for this year.
b.
Determine the value of the stock option to Ms. Morris.
c.
Determine the total amount of Ms. Morris's compensation for the year.