notes to the financial statements - Food Empire Holdings Limited

Food Empire Holdings Limited Annual Report 2012
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
32. Employee benefits (cont’d)
The fair value of the share options as at the date of grant was estimated by an external valuer using Trinomial Option Valuation
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:
(c)
2011 Options (February)
Group
Grant –
10 years
Average dividend per share (S$) 0.01218
Expected volatility (%) 43.00
Risk-free rate (%) 0.935
Expected life of option (years) 4
Weighted average share price (S$) 0.505
(d)
2011 Options (December)
Group
Grant –
10 years
Average dividend per share (S$) 0.01218
Expected volatility (%) 41.23
Risk-free rate (%) 0.602
Expected life of option (years) 5
Weighted average share price (S$) 0.315
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may
occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.
No other features of the option grant were incorporated into the measurement of fair value.
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