notes to the financial statements - Food Empire Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
32. Employee benefits (cont’d)
Out of the 11,740,000 (2011: 15,890,000) outstanding options on 31 December 2012, 11,740,000 (2011: 7,370,000) shares are
exercisable as at 31 December 2012.
The fair value of the share options as at the date of grant was estimated by an external valuer using Black-Scholes Option Pricing
Model, taking into account the terms and conditions under which the options were granted. The inputs to the model used for the
options granted are shown below:
(a)
2004 Options
Group
Grant – Grant –
10 years 5 years
Dividend yield (%) 3.05 3.05
Expected volatility (%) 38.81 38.81
Historical volatility (%) 38.81 38.81
Risk-free interest rate 1 (%) 2.039 - 2.687 1.413 - 2.175
Expected life of option 2 (years) 4.000 - 5.500 2.750 - 4.250
Weighted average share price (S$) 0.35 0.35
Grant – 10 years
Grant – 5 years
Tranche 1 Tranche 2 Tranche 3 Tranche 1 Tranche 2 Tranche 3
1
Risk-free interest rate (%) 2.039 2.447 2.687 1.413 1.761 2.175
2
Expected life of option (years) 4.000 4.750 5.500 2.750 3.500 4.250
(b)
2010 Options
Group
Grant –
10 years
Average dividend per share (S$) 0.01262
Expected volatility (%) 45.36
Risk-free rate (%) 1.088
Expected life of option (years) 4
Weighted average share price (S$) 0.335
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