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Calculation of Fair Value of Stock Options
http://www.wikinvest.com/stock/Charlotte_Russe_Holding_(CHIC)/Calculation_Fair_Value_Stock_Options
Calculation of Fair Value of Stock Options
The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the weighted average assumptions used in the pricing model for stock options granted during the following periods:
Stock Options:
Years Ended
September 27,
2008 September 29,
2007 September 30,
2006
Expected life (years)
2.5 4.7 3.9
Expected volatility
51 % 45 % 48 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
3.2 % 4.7 % 4.6 %
Fair value per option granted
$ 5.17 $ 11.71 $ 9.03
Calculation of Fair Value of Stock Options
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The
expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the
Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical
payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the
weighted average assumptions used in the pricing model for stock options granted during the following periods:
Stock Options:
Years Ended
September 27,
2008 September 29,
2007 September 30,
2006
Expected life (years)
2.5 4.7 3.9
Expected volatility
51 % 45 % 48 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
3.2 % 4.7 % 4.6 %
Fair value per option granted
$ 5.17 $ 11.71 $ 9.03
This excerpt taken from the CHIC 10-K filed Nov 28, 2007.
Calculation of Fair Value of Stock Options
The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the weighted average assumptions used in the pricing model for stock options granted during the following periods:
Years Ended
Stock Options:
September 29,
2007
September 30,
2006
September 24,
2005
Expected life (years)
4.7 3.9 4.0
Expected volatility
45 % 48 % 47 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
4.7 % 4.6 % 4.0 %
Fair value per option granted
$ 11.71 $ 9.03 $ 7.02
F-15
Calculation of Fair Value of Stock Options
http://www.wikinvest.com/stock/Charlotte_Russe_Holding_(CHIC)/Calculation_Fair_Value_Stock_Options
Calculation of Fair Value of Stock Options
The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the weighted average assumptions used in the pricing model for stock options granted during the following periods:
Stock Options:
Years Ended
September 27,
2008 September 29,
2007 September 30,
2006
Expected life (years)
2.5 4.7 3.9
Expected volatility
51 % 45 % 48 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
3.2 % 4.7 % 4.6 %
Fair value per option granted
$ 5.17 $ 11.71 $ 9.03
Calculation of Fair Value of Stock Options
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The
expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the
Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical
payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the
weighted average assumptions used in the pricing model for stock options granted during the following periods:
Stock Options:
Years Ended
September 27,
2008 September 29,
2007 September 30,
2006
Expected life (years)
2.5 4.7 3.9
Expected volatility
51 % 45 % 48 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
3.2 % 4.7 % 4.6 %
Fair value per option granted
$ 5.17 $ 11.71 $ 9.03
This excerpt taken from the CHIC 10-K filed Nov 28, 2007.
Calculation of Fair Value of Stock Options
The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a multiple option award approach. The expected life of options represents the period of time the options are expected to be outstanding and is based on historical trends and other subjective factors. The expected stock volatility is based on the average of historical volatility of the Company’s common stock and other subjective factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time awards are granted, and the expected dividend rate takes into account the absence of any historical payments and management’s intention to retain all earnings for future operations and expansion.
The following table presents the weighted average assumptions used in the pricing model for stock options granted during the following periods:
Years Ended
Stock Options:
September 29,
2007
September 30,
2006
September 24,
2005
Expected life (years)
4.7 3.9 4.0
Expected volatility
45 % 48 % 47 %
Expected dividend yield
0 % 0 % 0 %
Risk-free interest rate
4.7 % 4.6 % 4.0 %
Fair value per option granted
$ 11.71 $ 9.03 $ 7.02
F-15