Wind River going up, up, up! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wind River going up, up, up!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: J. Kerner who wrote (3326)	6/24/1998 2:55:00 PM
From: Michael Greene	Read Replies (1) of 10309

Re: FAS 123 The three main factors which influence the FAS 123 disclosure is 1) Stock appreciation and 2) Number of vested options and 3) Time remaining until options expire. ...you need to take into account how many options were exercised over the year. Jason, I do not claim to be an expert on FAS 123 but the above does not appear to match my observations. All of the Pro Forma earnings information that I listed was from the respective companies 10K's and in discussing the basis for the Pro Forma earnings calculations they all discussed the fair market value of options granted during the year and did not bring up the issue of options exercised. Each company spelled out the same set of assumptions underlying their calculations which were in all cases the values used for Black-Scholes pricing of the granted options. 1)Risk-free interest rate, 2)Expected volatility, 3)Expected option life, and 4)Expected dividends. Certainly the issues that you bring up are the important ones governing the eventual financial impact of the options but they do not appear to be germane to the calculation of Pro Forma earnings. Regards, Michael

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next