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Please see attach confused about these problems. Thank you in advance Intel Corporation Stock Options Estimated fair values Expected life (in years) 2008 $ 5.74
Please see attach confused about these problems. Thank you in advance
Intel Corporation Stock Options Estimated fair values Expected life (in years) 2008 $ 5.74 2007 2006 $ $ 5.21 5.79 5.0 5.0 4.9 Risk-free interest rate 3.0% 4.5% 4.9% Volatility 37% 26% 27% Dividend yield 2.7% 2.0% 2.0% Additional information with respect to stock option activity is as follows: (In Millions, Except Per Share Amounts) Number of Shares Weighted Average Exercise Price December 31, 2005 899.9 $26.71 52.3 $20.04 Exercises (47.3) $12.83 Cancellations and forfeitures (65.4) $28.07 December 30, 2006 839.5 $26.98 24.6 $22.63 (132.8) $19.78 Grants Grants Exercises Cancellations and forfeitures December 29, 2007 (65.4) $31.97 665.9 $27.76 27.9 $21.81 Exercises (38.6) $19.42 Cancellations and forfeitures (42.8) $31.14 Grants Expirations December 27, 2008 (2.4) 610.0 1.) What did Intel expense for share-based compensation for 2008? Answer ($ million) How many options did Intel grant in 2008? Answer (million shares) $25.84 $27.79 Intel Corporation 2.) Compute the fair value of all options granted during 2008. (Round your answer to one decimal place.) Answer ($ million) 3.) Estimate the cash that Intel received from its employees when these options were exercised. (Round your answer to one decimal place.) Answer ($ million) 4.) What was the intrinsic value per share of the options exercised in 2008? (Hint: Assume that Intel grants options at-the-money.) $Answer per share 5.) If employees who exercised options in 2008 immediately sold them, what "profit" did they make from the shares? (Round your answer to one decimal place.) Answer ($ million) 6.) The tax benefit that Intel will receive on the options exercised is computed based on the intrinsic value of the options exercised. Estimate Intel's tax benefit from the 2008 option exercises assuming a tax rate of 34.7%. (Round your answer to one decimal place.) Answer ($ million) 7.) What was the average exercise price of the options that expired in 2008? $Answer per shareStep by Step Solution
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