At a certain corporation, N is the total number of employees. These e

Question

At a certain corporation, N is the total number of employees. These employees can choose among a variety of benefits packages, and R% of them choose the stock option plan as their benefit package. For each employee in this plan, the corporation annually buys S shares of the company’s stock. Suppose the average price per share of the company’s stock is P.

Whoisdmx15 · Answer

It's not letting me submit the answer.
This post has been archived or something else.
Or is it just me?

poojaarora1818 · Answer

If I click on the timer is not working for me. Due to this, I cannot submit the answer to this question. Could you pls check if there is some issue?

Bunuel · Answer

This should be fixed now. Thank you!

ManifestDreamMBA · Answer

Number of employees = N
Employees with stock option = N*R/100
Shares per plan = S
Price per share = P

Total number of shares = Employees with stock option * Shares per plan = NR/100 *S = NRS/100

Average price per employee = Total shares * price/Number of employees = (NRS/100 * P)/ (NR/100) = NRSP/NR = SP

Bismuth83 · Answer

1. First, we need to  find just how many shares the company must get each year . R% of N employees choose the stock option, or  \frac{NR}{100}  employees. It is known that the company buys S shares for each of these employees, making a total of  \frac{NRS}{100}  shares bought.

2. Next, the question asks us to  find how much the company gives, in terms of value, to each employee that chooses a stock option . Since each stock costs P and each employee gets S stocks, the monetary value given is SP.

3. Our answer will be:   The total number of shares of stock the corporation must buy annually to support this benefit package - NRS/100 and The average monetary value of a single employee’s annual benefit in this plan - SP  .

Agarwal2003 · Answer

While calculating the average we should divide by N and not NR/100. Average is to be calculated over all employees

HarshZsssh · Answer

need more clarity for second part of the question

Agarwal2003 · Answer

Which part

ManifestDreamMBA · Answer

Think of these as numbers 
 Number of employees = N = 1000 
 Of these 10% chose stock options
Employees with stock option = N*R/100 = 1000*10% = 100
Shares per plan = S = 20
Price per share = P = 5

So, now the total shares required for the 100 employees  
 Total number of shares = Employees with stock option * Shares per plan = NR/100 *S = NRS/100 = 100*20 = 2000

Average price per employee = Total shares * Price/Number of employees = (NRS/100 * P)/ (NR/100) = NRSP/NR = SP = 2000*5/100 = 100

Hope this helps!

egmat · Answer

Hi HarshZsssh!

Let me break down the second part — the average monetary value of a single employee's annual benefit — nice and slow.

The question tells us:
- Each employee in the stock option plan gets  S  shares of stock per year.
- The average price per share is  P  dollars.

So the question is simply: what is the dollar value of the shares ONE employee receives?

That's just:

Value = (number of shares per employee) × (price per share) = S × P = SP

That's it! The answer for the Average Monetary Value column is  Row 6: SP .

Note that  this part does NOT involve:
- It does NOT involve  N  (total employees), because we only care about ONE employee's benefit.
- It does NOT involve  R  (the percentage choosing this plan), because we're not counting how many people chose it — we already know the person IS in the plan.

A common trap here is picking RSP/100 (Row 5), which would give the total dollar value across ALL employees in the plan.  But the question asks for a SINGLE employee's benefit, so we strip away  N  and  R  entirely.

To see how both parts connect:

-  Part A (Total Shares):  First find how many employees are in the plan:  N × R/100 . Then multiply by  S  shares each:  NRS/100 . This is  Row 3 .
-  Part B (Value Per Employee):  Each employee gets  S  shares worth  P  each:  SP . This is  Row 6 .

You can even sanity-check: if you multiply Part B (the value per person,  SP ) by the number of people in the plan ( NR/100 ), you'd get the total cost to the corporation:  NRSP/100 . That makes sense — total cost = per-person cost × number of people. Everything fits together.

Answer: 3A, 6B

At a certain corporation, N is the total number of employees. These e

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The total number of shares of stock the corporation must buy annually to support this benefit package	The average monetary value of a single employee’s annual benefit in this plan
		NPS
		NRS
		NRS/100
		RSP
		RSP/100
		SP

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At a certain corporation, N is the total number of employees. These e