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Kumpulan Fima Berhad
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192
Notes to the
financial statements
31 march 2017
33. Employee benefits (cont’d.)
Employees’ Share Scheme (“ESS”) (cont’d.)
(a) ESOS (cont’d.)
-
The weighted average fair value of options granted during the financial year was RM0.17 (2016: RM0.28).
-
The weighted average share price at the date of exercise of the options exercised during the financial year was
RM1.89 (2016: RM1.91).
-
The weighted average exercise price for options outstanding at the end of the year was RM1.89 (2016: RM1.64).
-
The ESOS had expired on 17 November 2016.
Fair value of share options granted
The fair value of the share options granted is estimated at the grant date using a binomial option pricing model, taking
into account the terms and conditions upon which the instruments were granted.
The following table lists the inputs to the pricing models for the year ended 31 March 2017:
Binomial option
pricing model
2017
2016
Dividend yield (%)
4.89
5.00
Expected volatility (%)
39.93
38.72
Risk-free interest rate (% p.a.)
1.83
2.52
Balance expected life of option (years)
-
2.87
Weighted average share price (RM)
1.82
1.88
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 over a period similar to the life of the
options is indicative of future trends, which may not necessarily be the actual outcome.