Books

Valuing Employee Stock Options (Wiley Finance)
Introduction to Financial Accounting: A User Perspective, Third Edition
The E-Business Workplace: Discovering the Power of Enterprise Portals
Valuation: Avoiding the Winner's Curse
Microsoft Excel for Accounting: The First Course
If You're Clueless About Accounting and Finance and Want to Know More
Contesting IRS Penalties (Allyear Tax Guides)
The Evolution of Green Politics: Development and Change Within European Green Parties
Eight Steps to Seven Figures : The Investment Strategies of Everyday Millionaires and How You Can BecomeWealthy Too
Vault Guide to the Top Accounting Firms (Vault Career Library)
Personal Finance: Turning Money into Wealth and Workbook Package (2nd Edition)
Managing to Be Wealthy
Commercial Banking : The Management of Risk
Pricing and Hedging of Derivative Securities
The Real Options Solution: Finding Total Value in a High-Risk World
M&A Integration : A Framework for Executives and Managers
Litigation Services Handbook, 2004 Cumulative Supplement
The Coopers & Lybrand SEC Manual
Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market
Intermediate Accounting, Chapters 15-24, Working Papers
E-Business and ERP: Transforming the Enterprise
Advanced Corporate Finance
Riskgrade Your Investments: Measure Your Risk and Create Wealth
The Psychology of Money : An Investment Manager's Guide to Beating the Market (Wiley Finance)
Wall Street: The Markets, Mechanisms and Players (The Economist Series)

Valuing Employee Stock Options (Wiley Finance)

Average customer rating:

Frustrating
Generous on Theory, Secretive on Details

Valuing Employee Stock Options (Wiley Finance)
Johnathan Mun
Manufacturer: Wiley
ProductGroup: Book
Binding: Hardcover

General | Popular Economics | Business & Investing | Subjects | Books

Labor & Industrial Relations | Economics | Business & Investing | Subjects | Books

Corporate Finance | Finance | Business & Investing | Subjects | Books

General | Business & Investing | Subjects | Books

General | Investing | Business & Investing | Subjects | Books

Options | Investing | Business & Investing | Subjects | Books

Stocks | Investing | Business & Investing | Subjects | Books

All Amazon Upgrade | Amazon Upgrade | Stores | Books

Business & Investing | Amazon Upgrade | Stores | Books

Professional & Technical | Amazon Upgrade | Stores | Books

Qualifying Textbooks - Spring 2007 | Stores | Books
Similar Items:

Fair Value for Financial Reporting: Meeting the New FASB Requirements
Valuing Employee Stock Options and Other Share-Based Payments: Complying with FAS 123R
Business Valuation and Taxes: Procedure, Law, and Perspective
The Stock Options Book
Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions, 2nd Edition (Wiley Finance)

ASIN: 0471705128

Book Description

A comprehensive guide to understanding the implications and applications of valuing employee stock options in light of the new FAS 123 requirements
Due to the new requirements of the Proposed Statement of Financial Accounting Standards (FAS 123) released by the Financial Accounting Standards Board (FASB)-namely the fact that employee services received in exchange for equity instruments be recognized in financial statements-companies are now scrambling to learn how to value and expense employee stock options (ESOs). Based on author Dr. Johnathan Mun's consulting and advisory work with the FASB consulting projects with several Fortune 500 firms, Valuing Employee Stock Options provides readers with a comprehensive look at this complex issue.
Filled with valuable information on binomial lattice and closed-form modeling techniques, Valuing Employee Stock Options can help financial professionals make informed decisions when attempting to ascertain the fair-market value of ESOs under the new requirements.
Johnathan Mun, PhD, MBA, MS, CFC, FRM (San Francisco, CA), is Vice President of Analytical Services at Decisioneering, Inc., the makers of Crystal Ball analytical software. He is also the author of Applied Risk Analysis (0-471-47885-7), Real Options Analysis (0-471-25696-X), and Real Options Analysis Course (0-471-43001-3), all of which are published by Wiley.

Download Description

A comprehensive guide to understanding the implications and applications of valuing employee stock options in light of the new FAS 123 requirements Due to the new requirements of the Proposed Statement of Financial Accounting Standards (FAS 123) released by the Financial Accounting Standards Board (FASB)-namely the fact that employee services received in exchange for equity instruments be recognized in financial statements-companies are now scrambling to learn how to value and expense employee stock options (ESOs). Based on author Dr. Johnathan Mun's consulting and advisory work with the FASB consulting projects with several Fortune 500 firms, Valuing Employee Stock Options provides readers with a comprehensive look at this complex issue. Filled with valuable information on binomial lattice and closed-form modeling techniques, Valuing Employee Stock Options can help financial professionals make informed decisions when attempting to ascertain the fair-market value of ESOs under the new requirements. Johnathan Mun, PhD, MBA, MS, CFC, FRM (San Francisco, CA), is Vice President of Analytical Services at Decisioneering, Inc., the makers of Crystal Ball analytical software. He is also the author of Applied Risk Analysis (0-471-47885-7), Real Options Analysis (0-471-25696-X), and Real Options Analysis Course (0-471-43001-3), all of which are published by Wiley.

Customer Reviews:

Frustrating.......2006-09-28

Jonathan Mun is one of those authors with lean credentials who write a book to establish themselves as experts in a field, rather than seeking to clarify an admittedly complex suject for the reader. In so doing, he manages to cram a 15-page paper into a 300-page book, primarily by being repetitive and secondly by including lots of obscrure tables.

Aha!, one says, I'll load the accompanying C.D. and work my way through the spreadsheet examples. Well, unfortunately the speadsheets are not operational. In order to use them, you have to buy the author's working version for a mere $1,000. For even more, you can buy Mun's corporate solutions for HR departments. In other words, the book is simply one long advertisement for Mun's software company, and is of limited usefulness to readers seeking to understand the complexities of ESOs.

This is not Wiley's standard practice. For instance, another of their books ["Financial Modeling" by Chandan Sengupta], which discusses option pricing using lattice models, contains a cd with working Excel spreadsheets that are fully operational. Unfortunately, it does not discuss ESOs, which differ somewhat from regular stock options.

So what are the alternatives?

1. The casual user (e.g., an employee who wants to get an idea of what his stock options are worth) can use one of the many calculators for general options available for free on the internet. A good one is the Option Pricing Calculator by OTrader Software.

2. Three useful articles for understanding the basics of lattice models are "Valuing employee Stock Options Using a Lattice Model" from the December 2004 issue of the CPA Journal, "Valuing Employee Stock Options: A Binomial Approach Using Microsoft Excel" from the July 2005 issue of the CPA Journal , and "How to 'Excel" at Options Valuation' from the December 2005 issue of the Journal of Accountancy. All three articles contain Excel spreadsheets as examples.

3. Readers wishing Excel spreadsheets that incorporate all of the features unique to EOSs (vesting periods, termination, illogical behavior, etc.) may wish to consider purchasing (@ 1/15 of Mun's price) Peter Hoadley's ESO package over the Internet. He also provides (for free) links to academic papers on the subject.

NOTE: The book describes Mun's credentials as follows:

"JOHNATHAN MUN is Vice President of Analytical Services at Decisioneering, Inc., the makers of Crystal Ball° analytical software. His duties focus primarily on heading up the development of real options and financial analytics software powered by Crystal Ball. Prior to joining Decisioneering, he was a consulting manager and financial economist in the Valuation Services and Global Financial Services practice of KPMG Consulting, and a manager with the Economic Consulting Services practice at KPMG LLP. He holds a PhD in finance and economics, and an MBA and MS in management. Mun is also certified in financial risk management and in financial consulting. He is currently a visiting professor in finance, economics, and statistics at various universities, including the University of Applied Sciences (Germany), the Swiss School of Management (Switzerland), and Golden Gate University (California). Mun is the author of Applied Risk Analysis, Real Options Analysis, and Real Options Analysis Course, all published by Wiley. He continues to offer worldwide seminars and lectures on the topics of real options, simulation and risk analysis, and corporate finance."

Generous on Theory, Secretive on Details.......2005-04-12

The book does a decent job of providing intuition on why traditional Black-Scholes framework will not work for Employee Stock Options. But then again, if directional intuition is what you are seeking, why spend the money on this book when you can get the same information by reading articles published in the Financial Analysts Journal (FAJ)? The book and the accompanying CD seem to be very cryptic when it comes to understanding the effects of early exercise. The CD is pretty much a black-box. If you think you can buy this book and explain the results of the analysis, then you are mistaken. Unless you have a PhD in Finance or a Masters in Financial Engineering, you may not understand what the algorithms do. Then again, if you had these degrees, you wouldn't need the book!

Books:

Books