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Burcolene 12/07

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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April 24, 2019 at 1:44 pm #513998
samu6149
Member
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Dear Sir I don’t understand how Number of Option is calculated.
Number of option = 25.4million *(1-0.05)^3 *(1-0.2)=17.42 million.
April 25, 2019 at 2:22 pm #514105
John Moffat
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- Topics: 57
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There is an attrition rate of 5% a year – so the number will reduce by 5% a year for 3 years. Hence the (1 – 0.05)^3
The question also says that 20% will not have achieved the required performance, so only 80% will – hence the (1 – 0.2)
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