The Coca-Cola Company had 2.5 billion shares outstanding at December 31, 2000. 3
ID: 2714336 • Letter: T
Question
The Coca-Cola Company had 2.5 billion shares outstanding at December 31, 2000. 345 346 The following information was adapted from Coca-Cola’s 2000 employee stock option footnote:
Assume the average stock prices at the time ESOs were exercised were $65, $60, and $58 in 1998, 1999, and 2000, respectively.
Calculate Coca-Cola’s ?ESO for each of the three years presented.
1998 1999 2000 Number of ESOs exercised (millions) Average strike price of exercised ESOs Tax benefits from ESO exercises (millions of dollars)97 Risk-free interest rate Stock price volatility Dividend yield S 18.93 S 26.12 72 26.00 16 5.896 31,796 1.29% Weighted- Weighted- Weighted- Range of Exercise Prices Remaining Exercise Shares Con Contractual Life Price Price S 15.37 S 23.41 S 35.63 $ 48.86 $ 56.31 15.37 23.41 35.63 48.86 S 57.06 65.90 46.57 10.00 to $20.00 $20.01 to $30.00 30.01 to $40.00 $40.01 to $50.00 50.01 to $60.00 60.01 to $86.7 $10.00 to $86.75 0.8 years 3.1 years 4.8 years 5.8 years 8.9 ycars 10 10 65 10 65.87 112 7.4 years S 51.23 60Explanation / Answer
The Coca-Cola Company had 2.5 billion shares outstanding at December 31, 2000. 3