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Fasb 123 - Excel

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Fasb 123 document sample

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									               BASIC FASB 123 Worksheet

Stock Price ($)                                50.00
Exercise Price ($)                             50.00
Expected Life (years)                           6.85
Time to Vest (years)                               3
Employee Exit Rate pre-vesting (% per year)   5.00%

Expected Volatility (% per year)              40.00%
Risk-free rate (% per year)                    7.50%
Dividend yield (% per year)                    2.50%

Which Model? 1=BlackScholes; 2=Bin. Tree           2

                  Calculate Option Value
                  Calculate Option Value

Value of Option                                18.52
                   ENHANCED FASB 123 Worksheet

Stock Price ($)                                                        130.00
Exercise Price ($)                                                     100.00
Total Life i.e., time to last exercise date (years)                         5
Time to Vest (years)                                                        0
Employee Exit Rate pre-vesting (% per year)                            0.00%
Employee Exit Rate post-vesting (% per year)                           0.00%
Exercise Multiple*                                                       1.31

Expected Volatility (% per year)                                       40.00%
Risk-free rate (% per year)                                             3.00%
Dividend yield (% per year)                                             0.50%

               Calculate Value and Expected Time
               Calculate Value and Expected Time

Value of Option                                                         30.61
Expected Time to Exercise Assuming Option Vests                          0.08

*The exercise multiple defines the early exercise strategy.
The option holder voluntarily exercises early if the stock
price is greater than the exercise price times the exercise multiple
              BASIC FASB 123 Worksheet                 ENHANCED FASB 123

Stock Price ($)                                50.00
Exercise Price ($)                             52.00
Expected Life (years)                           6.15
Time to Vest (years)                               3
Employee Exit Rate pre-vesting (% per year)   5.00%

Expected Volatility (% per year)              40.00%
Risk-free rate (% per year)                    7.50%
Dividend yield (% per year)                    2.50%

Which Model? 1=BlackScholes; 2=Bin. Tree           1

            Calculate Option Value
            Calculate Option Value

Value of Option                                17.06
                      ENHANCED FASB 123 Worksheet

Stock Price ($)                                                        130.00
Exercise Price ($)                                                     100.00
Total Life i.e., time to last exercise date (years)                         5
Time to Vest (years)                                                        0
Employee Exit Rate pre-vesting (% per year)                            0.00%
Employee Exit Rate post-vesting (% per year)                           0.00%
Exercise Multiple*                                                       1.31

Expected Volatility (% per year)                                       40.00%
Risk-free rate (% per year)                                             3.50%
Dividend yield (% per year)                                             0.50%

                    Calculate Value and Expected Time
                    Calculate Value and Expected Time

Value of Option                                                         30.62
Expected Time to Exercise Assuming Option Vests                          0.07

*The exercise multiple defines the early exercise strategy.
The option holder voluntarily exercises early if the stock
price is greater than the exercise price times the exercise multiple

								
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