SI
SI
discoversearch

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.
Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Mike M2 who wrote (58213)4/30/1999 2:06:00 PM
From: Freedom Fighter  Read Replies (3) | Respond to of 132070
 
Mike,

Are you familiar with the exact calculations for stock options as presented in 10K footnotes?

Here's why I ask.

The actual option values that are presented are a straight forward Black Scholes calculation using the inputs they show for risk free, rate, dividends, volatility etc...

They also present an options granted table.

If you multiply the options granted times their value and use that number to adjust the reported net income you don't come up with the adjusted net income they present in the pro-forma data.

I've tried various combinations of tax benefits and spreading out the cost over the years the options will take to vest, but I can never square to the company numbers.

I use my own method for this so it's not that big an issue, but I would at least like to understand the company presentations a little better.

Thanks
Wayne



To: Mike M2 who wrote (58213)4/30/1999 4:57:00 PM
From: TheStockFairy  Read Replies (2) | Respond to of 132070
 
mike,

I have an options 101 dumb question....

If a company issues a stock for their ESOP at .01 cents, what happens to the difference between the .01 and the employee's vesting price?

For example, if the employee's vesting price is $1, what happens to the other 99 cents?

TIA