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On 1 July 2009,Windermere Ltd Grants 200 Share Options to Each

Question 43

Multiple Choice

On 1 July 2009,Windermere Ltd grants 200 share options to each of its 100 employees.The share option is conditional upon the employee working for the entity when the share option vests and the entity achieving the following non-market vesting conditions:
 Year ending 30 June  Condition 2010 If earnings have increased by >18%2011 If earnings have increased by >13% averaged across  the 2 year period 2012 If earnings have increased by at least 10% averaged  across the 3 year period \begin{array} { | l | l | } \hline \text { Year ending } 30 \text { June } & { \text { Condition } } \\\hline 2010 & \text { If earnings have increased by } > 18 \% \\\hline 2011 & \begin{array} { l } \text { If earnings have increased by } > 13 \% \text { averaged across } \\\text { the 2 year period }\end{array} \\\hline 2012 & \begin{array} { l } \text { If earnings have increased by at least } 10 \% \text { averaged } \\\text { across the 3 year period }\end{array} \\\hline\end{array}
If the employee resigns before the share option vests,the share option is forfeited.
 On 1 July 2009,Windermere Ltd grants 200 share options to each of its 100 employees.The share option is conditional upon the employee working for the entity when the share option vests and the entity achieving the following non-market vesting conditions:  \begin{array} { | l | l | }  \hline \text { Year ending } 30 \text { June } & { \text { Condition } } \\ \hline 2010 & \text { If earnings have increased by } > 18 \% \\ \hline 2011 & \begin{array} { l }  \text { If earnings have increased by } > 13 \% \text { averaged across } \\ \text { the 2 year period } \end{array} \\ \hline 2012 & \begin{array} { l }  \text { If earnings have increased by at least } 10 \% \text { averaged } \\ \text { across the 3 year period } \end{array} \\ \hline \end{array}  If the employee resigns before the share option vests,the share option is forfeited.   On 30 June 2010,based on probability estimates how many employees are expected to be employed by Windermere Ltd when the share option vests? A)  75 B)  78 C)  85 D)  88
On 30 June 2010,based on probability estimates how many employees are expected to be employed by Windermere Ltd when the share option vests?


A) 75
B) 78
C) 85
D) 88

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