Table:
|  | Number of Shares | Fair Value Per Share |
| --- | --- | --- |
| Outstanding at September 30, 2016 | 2,046,169 | $4.90 |
| Granted | 1,249,224 | $6.61 |
| Settled | (707,174) | $4.81 |
| Canceled | (231,198) | $4.93 |
| Outstanding at September 30, 2017 | 2,357,021 | $5.65 |
| Granted | 1,184,906 | $8.54 |
| Settled | (745,197) | $5.26 |
| Canceled | (216,554) | $7.39 |
| Outstanding at September 30, 2018 | 2,580,176 | $6.92 |
| Granted | 1,147,976 | $9.67 |
| Settled | (881,420) | $6.53 |
| Canceled | (494,245) | $7.70 |
| Outstanding at September 30, 2019 | 2,352,487 | 8.26 |
Paragraphs:
Restricted Stock Units
The following table summarizes RSU activity in the fiscal years ended September 30, 2019, 2018, and 2017:
The cost of RSUs is determined using the fair value of the Company’s Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $6.8 million, $5.9 million, and $4.0 million in stock-based compensation expense related to outstanding RSUs in the fiscal years ended September 30, 2019, 2018, and 2017, respectively. As of September 30, 2019, the Company had approximately $12.2 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.3 years.
Question:
How is the cost of the Restricted Stock Units (RSUs) determined?
Answer: using the fair value of the Company’s Common Stock on the award date