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Author: David Heller
Publisher: John Wiley & Sons
ISBN: 1119988306
Category : Business & Economics
Languages : en
Pages : 127
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Book Description
The valuation of the liability structure can be determined by real options because the shares of a company can be regarded as similar to the purchase of a financial call option. Therefore, from this perspective, debt can be viewed as the sale of a financial put option. As a result, financial analysts are able to establish different valuations of a company, according to these two financing methods. Valuation of the Liability Structure by Real Options explains how the real options method works in conjunction with traditional methods. This innovative approach is particularly suited to the valuation of companies in industries where an underlying asset has high volatility (such as the mining or oil industries) or where research and development costs are high (for example, the pharmaceutical industry). Integration of the economic value of net debt (rather than the accounting value) and integration of the asset volatility are the main advantages of this approach.
Author: David Heller
Publisher: John Wiley & Sons
ISBN: 1119988306
Category : Business & Economics
Languages : en
Pages : 127
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Book Description
The valuation of the liability structure can be determined by real options because the shares of a company can be regarded as similar to the purchase of a financial call option. Therefore, from this perspective, debt can be viewed as the sale of a financial put option. As a result, financial analysts are able to establish different valuations of a company, according to these two financing methods. Valuation of the Liability Structure by Real Options explains how the real options method works in conjunction with traditional methods. This innovative approach is particularly suited to the valuation of companies in industries where an underlying asset has high volatility (such as the mining or oil industries) or where research and development costs are high (for example, the pharmaceutical industry). Integration of the economic value of net debt (rather than the accounting value) and integration of the asset volatility are the main advantages of this approach.
Author: Jeffrey J. Reuer
Publisher: Emerald Group Publishing
ISBN: 1849504946
Category : Business & Economics
Languages : en
Pages : 520
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Book Description
Examines the ways in which real options theory can contribute to strategic management. This volume offers conceptual pieces that trace out pathways for the theory to move forward and presents research on the implications of real options for strategic investment, organization, and firm performance.
Author: Dean Paxson
Publisher: Elsevier
ISBN: 0080497977
Category : Business & Economics
Languages : en
Pages : 345
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Book Description
Real R&D options are among the earliest modelled real options, with now ten primary practical uses: general R&D planning, planning R&D in stages, evaluating test information, new product development timing, operations, abandonment, risk sharing, market funding, industry strategy and regulation. This book was partly motivated by requests to identify and develop real option models for R&D in telecommunications, petroleum technology and biotechnology. Nine new models cover information and implementation costs, analytical solutions for mean reverting, or fat tailed revenues, endogenous learning and exogenous and experiential shocks, American sequential options, and innovator advantages. Four new applications include forward start development options, exploration options, innovation with information costs, and innovator's real values with changing market share. R&D directors and researchers will find several uses for these models: - general R&D planning - evaluating test information - new product development timing - risk sharing - industry strategy and regulation - A practical guide to how organizations can use Real Option techniques to effectively value research and development by companies - Provides a rigorous theoretical underpinning of the use of Real Option techniques - Real Options applications are orientated around the economies of North America, Europe and Asia, for an international perspective
Author: Anne Albert-Cromarias
Publisher: John Wiley & Sons
ISBN: 1786309300
Category : Business & Economics
Languages : en
Pages : 244
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Book Description
Faced with global economic, social and environmental challenges requiring us to go beyond individual actions, the development of collective dynamics is the ideal response. From this perspective, territories, which have long been neglected, are now asserting themselves as breeding grounds for innovative and relevant forms of organized action in response to shared experiences. Bringing together more than twenty researchers in strategic management, human resources management and marketing, Collective Dynamics and Territories offers, through nine territorial issues (innovating and regenerating territories, building environmental action, attracting and retaining talent, etc.), insights into the conditions and modalities for developing collective dynamics within territories. The success of local collective dynamics depends on support for the actors involved, from situation analysis to problem definition, including idea generation, selection, implementation and evaluation. This book offers a comprehensive, systemic and operational vision for analyzing and acting on collective territorial dynamics.
Author: Martine Brasseur
Publisher: John Wiley & Sons
ISBN: 1786308568
Category : Business & Economics
Languages : en
Pages : 212
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Book Description
Inequalities and other "social fractures" mark our contemporary economies and societies. While global approaches may have long been sufficient in the past, the focus today is on how local dynamics can make inclusion possible. This two-volume collective work reports on these local dynamics, shedding light on how the creation of inclusive territories can be envisaged and developed. To this end, the involvement of public, private and associative organizations has been identified as one of the conditions for success. In fact, they act both as partners in a territory and as inclusive spaces. Inclusive Territories 2 focuses on local partnerships that promote inclusion, presenting existing arrangements and discussing conditions for their impetus.
Author: Elisabeth Peyroux
Publisher: John Wiley & Sons
ISBN: 1394230001
Category : Business & Economics
Languages : en
Pages : 356
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Book Description
Thinking about development and the environment simultaneously is one of the biggest scientific and societal challenges of the 21st century. Understanding the interactions between biophysical systems and human activities in an era of global change requires overcoming disciplinary divides and opening up new epistemological perspectives. This book explores these challenges using a territorial lens. Combining various scales of analyses (from global to local) and contexts (both urban and rural) in the North and in the South, it analyzes the relationships between environment and development through a variety of geographical objects (i.e. cities, rural and agricultural areas, coastlines, watershed), themes (i.e. ecological transitions, food, energy, transport, agriculture, mining activities) and methodologies (i.e. qualitative and quantitative approaches, modeling, in situ measurements). By engaging in a dialogue between social science and natural science disciplines, within different fields and with a variety of forms of knowledge production, this book provides essential information for understanding and reading the complexity of a globalized world. This book is targeted at academics and students in social sciences and at stakeholders in the field of territorial and environmental management.
Author: Marcus Schulmerich
Publisher: Springer Science & Business Media
ISBN: 3540285121
Category : Business & Economics
Languages : en
Pages : 367
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Book Description
Managerial decision-making during the lifetime of a project can have im portant implications on project handling and its contribution to shareholder value. Traditional capital budgeting methods (in particular methods based on net present value) fail to capture the role of managerial degrees of free dom and therefore tend to lead to a systematic undervaluation of the project. In contrast, the real options approach to investment analysis characterizes decision-making flexibility in terms of (real) option rights which can be eval uated analogously to financial options using contingent-claims pricing tech niques widely used in capital markets. The research carried out by Marcus Schulmerich analyzes real options for n- constant and stochastic interest rates versus constant interest rates. Analyzing stochastic interest rates in the context of real options valuation is of particular relevance given their long time to maturity which makes them more vulnera ble to interest rate risk than short-term financial options. To date, there has not been a comprehensive review of this issue in the academic literature. The fact that interest rates have fiuctuated widely over the recent years further highlights the need for studying this issue.
Author: David Heller
Publisher: John Wiley & Sons
ISBN: 1786305224
Category : Business & Economics
Languages : en
Pages : 200
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Book Description
In order to create value, companies must allocate their resources effectively and evaluate investment alternatives. This book examines, from a theoretical and empirical point of view, how managerial flexibility can be integrated into investment decisions through the optional approach. Unlike the traditional net present value method, the actual options take into account indeterminate elements. These lead to unpredictable cash flows at the time of the investment decision, especially in the context of complex and risky projects. The book puts into perspective the use of optional models and their interactions. The different categories of options are the subject of practical applications, through analysis of investment decisions where uncertainty is growing. Therefore, studies make it possible to consider the flexible nature of investment choices by integrating new information and risk over time.
Author: Aswath Damodaran
Publisher: John Wiley & Sons
ISBN: 0470049375
Category : Business & Economics
Languages : en
Pages : 698
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Book Description
"Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.
Author: Lenos Trigeorgis
Publisher: MIT Press
ISBN: 9780262201025
Category : Business & Economics
Languages : en
Pages : 452
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Book Description
Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. In the 1970s and the 1980s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace. In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm of real options—an approach that incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment. Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Also discussed are the strategic value of new technology, project interdependence, and competitive interaction. The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent past. Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights in into real-world applications.
