Thank you for your attention. But if I may restate my question again because I’m not clear yet.
We have 10 directors and estimates that 4 will leave in the 1st year and 2 will also leave in the year 2nd year over a three year period.
Shouldn’t the calculations look like this, especially in year 2:
Year 1
10-4 × number of shares × share price ×1/3
Year 2
6-2 × number of shares × share price × 2/3
My challenge is that in the lecture, you used the total number of directors throughout the calculations. That is,
Year 1
10-4 × number of shares × share price ×1/3
Year 2
10-2 × number of shares × share price × 2/3
Thank you.
