Idfa Webinar: Executive Compensation: The Ultimate Cdfa® Guide

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Idfa Webinar: Executive Compensation: The Ultimate Cdfa Guide

IDFA's September webinar gives you an in-depth understanding of exactly how to handle the most common executive compensation awards in a divorce situation. Watch the webinar on the IDFA website. Please complete the following quiz for one hour of CE credit for your CDFA designation. This quiz will be available until December 31, 2018. If you pass the quiz, you will receive a certificate to submit in your IDFA account when reporting the CE credit. Users have two attempts to pass the quiz. After two failed attempts, you will be locked out of the quiz. To unlock the quiz, please contact IDFA's customer service team to have the quiz reset within one business day. Users will be given one additional attempt after the quiz is un


Questions and Answers
  • 1. 
    Which valuation method for stock options is the most widely used and accepted?
    • A. 

      Black Scholes

    • B. 

      Binomial Method then stop when you reach that time

    • C. 

      Intrinsic Value

  • 2. 
    What are the most common form of executive compensation at the current time?
    • A. 

      Non Qualified Options

    • B. 

      Incentive Stock Options

    • C. 

      Restricted Stock Units

    • D. 

      Deferred Compesation

  • 3. 
    Which of the following is NOT a factor in a Black Scholes valuation?
    • A. 

      Stock Price

    • B. 

      Award Date

    • C. 

      Exercise Price

    • D. 

      Daily Volatility

  • 4. 
    What documentation is NOT relevant when analyzing executive compensation?
    • A. 

      Summary Plan Document

    • B. 

      Grant Letters

    • C. 

      W-2

    • D. 

      Holding Statement

    • E. 

      None of the above

  • 5. 
    Are RSU's or Stock Options awarded during the marriage ALWAYS a marital asset?
    • A. 

      Yes

    • B. 

      No

    • C. 

      Depends on vesting dates

  • 6. 
    What is the most common way to divide executive compensation accounts?
    • A. 

      Transfer holdings to a non-employee spouse

    • B. 

      Cash out and transfer cash

    • C. 

      Employee holds in constructive trust

  • 7. 
    Which formula is used to calculate the coverture fraction when stock options are awarded upon hire due to past performance?
    • A. 

      Nelson

    • B. 

      Hugg

    • C. 

      Harrison Fraction

  • 8. 
    What is needed for the non-employee spouse to be able to pay the taxes on awarded holdings?
    • A. 

      NOthing

    • B. 

      An IRS Private Letter Ruling

    • C. 

      A letter from a CPA

    • D. 

      A copy of the decree with a tax return

  • 9. 
    What is NOT considered income available for support?
    • A. 

      Dividends on vested RSUs

    • B. 

      Dividends on Unvested RSUs

    • C. 

      Dividends paid on the underlying stock of an option

    • D. 

      Annual RSU awards

  • 10. 
    What is the one weakness of the Black-Scholes valuation?
    • A. 

      It's not specific

    • B. 

      It assumes the option is not exercised until the last day of its life

    • C. 

      You can't accurately measure the volatility

    • D. 

      It's way too hard to calculate