Weighted Average Remaining Term WART is a calculation used to compare the time to maturity of asset-backed securities most commonly mortgages. Calculate the sum of each number. The Weighted Average Time to Vest is then divided by the number of shares granted to arrive at the Weighted Average Vesting Term.
For private companies with little historical information FASB suggests the formula weighted average vesting contract term2.
Determine the weight of each number. For example a stock option grant with a 4-year vesting period with 25 of the shares vesting each year and a 10-year contractual term would have an expected term of 625-years utilizing the simplified method under SAB 107 1 25 2 25 3 25 4 25 10 2. Calculate the sum of each number. Exam 1 20 Exam 2 20 Exam 3 20 Total Canvas Quizzes 20 Total Homework Assignments on MT 20 Total 100 The grading scale is as follows.