If you buy an investment for $800 and then sell it for $950 a year later, what is your annual return on investment (percentage)?​

18.75%

Explanation:

Since the investment is bought for $800 and then sold for $950 a year later, then the annual return on investment will be:

= (Selling price - Cost price) / Cost price × 100

= ($950 - $800)/$800 × 100

= $150/$800 × 100

= 18.75%

1. Total compensation expenses = 20,000 * $15 = $300,000

Vesting period (From 2017-2021) = 4 years

Annual compensation expenses = Total compensation expenses / 4

Annual compensation expenses = $300,000 / 4 years

Annual compensation expenses = $75,000

a. Compensation expenses 2017 = $75,000/2

Compensation expenses 2017 = $37,500

b. Compensation expenses 2018 = $75,000

2. The spread between the grant price and exercise price is allowed as base of tax benefit.

Tax benefit = [20,000 * (53-32)] * 35%

Tax benefit = [20,000 * 21] * 35%

Tax benefit = $420,000 * 35%

Tax benefit = $147,000