QUESTION 9 Partally correct O points out of 1 P Flag question Interpreting Disclosure on Employee Stock Options Assume Intel Corporation reported the following in its 2008 10-K report Share-Based Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R)... Share-based compensation reco was $853 million ($952 million in 2007 and $1,375 million in 2006). We use the Black-Scholes option pricing model to estimate the fair va granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the wei estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average ass in calculating these values, on estimates at the date of grant, as follows Stock Options 2008 2007 2006 Estimated fair values $5.74 $5.79 $5.2 Expected life (in years) 5.0 5.0 4.9 Risk-free interest rate 3.0% 4.5% 4.9% Volatility Dividend yield 37% 26% 27% 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 Grants Exercises Cancellations and forfeitures December 30, 2006 Grants Exercises Cancellations and forfeitures December 29, 2007 Grants Exercises 899.9 52.3 47.3) (65.4) 839.5 24.6 (132.8) (65.4) 665.9 19.9 (34.6) $26.71 $20.04 $12.83 $28.07 $26.98 $22.63 $19.78 $31.97 $27.76 $20.81 $19,42 QUESTION 9 Partally correct O points out of 1 P Flag question Interpreting Disclosure on Employee Stock Options Assume Intel Corporation reported the following in its 2008 10-K report Share-Based Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R)... Share-based compensation reco was $853 million ($952 million in 2007 and $1,375 million in 2006). We use the Black-Scholes option pricing model to estimate the fair va granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the wei estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average ass in calculating these values, on estimates at the date of grant, as follows Stock Options 2008 2007 2006 Estimated fair values $5.74 $5.79 $5.2 Expected life (in years) 5.0 5.0 4.9 Risk-free interest rate 3.0% 4.5% 4.9% Volatility Dividend yield 37% 26% 27% 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 Grants Exercises Cancellations and forfeitures December 30, 2006 Grants Exercises Cancellations and forfeitures December 29, 2007 Grants Exercises 899.9 52.3 47.3) (65.4) 839.5 24.6 (132.8) (65.4) 665.9 19.9 (34.6) $26.71 $20.04 $12.83 $28.07 $26.98 $22.63 $19.78 $31.97 $27.76 $20.81 $19,42
