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Author: James J. Alleman
Publisher: Springer Science & Business Media
ISBN: 0585333149
Category : Business & Economics
Languages : en
Pages : 274
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Book Description
Randall B, Lowe Piper & Marbury, L.L.R The issue of costing and pricing in the telecommunications industry has been hotly debated for the last twenty years. Indeed, we are still wrestling today over the cost of the local exchange for access by interexchange and competitive local ex change carriers, as well as for universal service funding. The U.S. telecommunications world was a simple one before the emergence of competition, comprising only AT&T and independent local exchange carriers. Costs were allocated between intrastate and interstate jurisdictions and then again, between intrastate local and toll. The Bell System then divided those costs among itself (using a process referred to as the division of revenues) and independents (using a process called settlements). Tolls subsidized local calls to keep the politi cians happy, and the firm, as a whole, covered its costs and made a fair return. State regulators, however, lacked the wherewithal to audit this process. Their con cerns centered generally on whether local rates, irrespective of costs, were at a po litically acceptable level. Although federal regulators were better able to determine the reasonableness of the process and the resulting costs, they adopted an approach of "continuous surveillance" where, like the state regulator, the appearance of rea sonableness was what mattered. With the advent of competition, this historical costing predicate had to change. The Bell System, as well as the independents, were suddenly held accountable.
Author: James J. Alleman
Publisher: Springer Science & Business Media
ISBN: 0585333149
Category : Business & Economics
Languages : en
Pages : 274
Get Book Here
Book Description
Randall B, Lowe Piper & Marbury, L.L.R The issue of costing and pricing in the telecommunications industry has been hotly debated for the last twenty years. Indeed, we are still wrestling today over the cost of the local exchange for access by interexchange and competitive local ex change carriers, as well as for universal service funding. The U.S. telecommunications world was a simple one before the emergence of competition, comprising only AT&T and independent local exchange carriers. Costs were allocated between intrastate and interstate jurisdictions and then again, between intrastate local and toll. The Bell System then divided those costs among itself (using a process referred to as the division of revenues) and independents (using a process called settlements). Tolls subsidized local calls to keep the politi cians happy, and the firm, as a whole, covered its costs and made a fair return. State regulators, however, lacked the wherewithal to audit this process. Their con cerns centered generally on whether local rates, irrespective of costs, were at a po litically acceptable level. Although federal regulators were better able to determine the reasonableness of the process and the resulting costs, they adopted an approach of "continuous surveillance" where, like the state regulator, the appearance of rea sonableness was what mattered. With the advent of competition, this historical costing predicate had to change. The Bell System, as well as the independents, were suddenly held accountable.
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.
Author: Walters, Bruce
Publisher: IGI Global
ISBN: 1591409101
Category : Business & Economics
Languages : en
Pages : 328
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Book Description
"This book makes an effort to explore the interaction of information technology and strategic management and aims to encourage joint research efforts among IT and strategy scholars for common solutions"--Provided by publisher.
Author: F. Peter Boer
Publisher: John Wiley & Sons
ISBN: 0471421278
Category : Business & Economics
Languages : en
Pages : 434
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Book Description
Harness the power of real options Real options theory is based on the Nobel Prize--winning work on financial options, and has captured the interest of executives, managers, and investors who need to understand the future profitability of an asset. Originally developed to value technology initiatives and companies, the method is now being applied broadly across various businesses and industries. The Real Options Solution offers comprehensive coverage of the real options approach with a five-step framework and examples for applying the author's unique total value model based on real options analysis. This approach will help executives and investors minimize the risk of committing to new ventures and delivers a framework flexible enough to apply to business initiatives in all types of companies.
Author: Nicola Secomandi
Publisher: World Scientific
ISBN: 9813149426
Category : Business & Economics
Languages : en
Pages : 258
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Book Description
The field of real options is concerned with the management and financial valuation of operational flexibility in business endeavors. From the very outset, energy and commodity markets — which play fundamental roles in the worldwide economy — have provided a relevant context for real option analysis, both in theory and practice.This volume is a collection of six chapters covering recent research on real options in energy and commodity markets, reflecting the significance of these markets for real option analysis. The volume is divided into two parts — the first on theory and the second on methods and applications.The two chapters in the first part of the book respectively address commodity storage and the concept of convenience yield, and how the management of real options can be impacted by the trader's own market decisions in the context of commodity shipping.The four chapters in the second part of the book propose and apply real option models in various domains — modeling the evolution of futures prices of emission certificates; managing copper extraction illustrated with an application to a project at Codelco, Chile, the largest copper producer in the world; the core ideas behind real option analysis in the context of the merchant management of hydrocarbon cracking operations; and optimizing the portfolio of contracts that oil refineries use to market their gasoline production.
Author: Günter Fandel
Publisher: Springer Science & Business Media
ISBN: 3662087995
Category : Business & Economics
Languages : en
Pages : 651
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Book Description
The authors analyse the New Economy from a scientific point of view. The success and the failure of enterprises of the new economy form a challenge to the modern business management and to the theory of the firm. This conference transcript answers the question in which way well-established concepts of the theory of the firm should be modified or new approaches should be created, in order to run enterprises of the new economy successfully. The discussion includes various fields of the theory of the firm and is therefore divided into the six essential disciplines of economic research, which are Production and Procurement, Finance, Marketing, Accounting, Human Resource Management and Economic Organization and Corporate Governance. The international orientation of the book addresses the world-wide scientific community.
Author: Andreas Würfel
Publisher: diplom.de
ISBN: 3832473076
Category : Business & Economics
Languages : en
Pages : 120
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Book Description
Inhaltsangabe:Abstract: This paper evaluates the real options approach (ROA) as a means for appraising capital investments under uncertainty. Globalisation and growing competitiveness have led to an increase in uncertainty with regard to companies decision making. Flexibility to react to this uncertainty has become more important. The question arises whether there is a need for a further investment appraisal technique or whether traditional techniques can cope with that. A growing literature about real options shows that traditional investment appraisal techniques do not value flexibility. That is why ROA has become more important within recent years. However, the degree of its utilisation by companies seems to be rather low. Three possible reasons for that are examined: ROA is not well-known by companies, especially small- and medium-sized enterprises. ROA is only limitedly applicable. ROA is too difficult to use. After traditional investment appraisal techniques have been outlined, the real options approach is illustrated by means of a case study. The possible range of application is assessed by reviewing the literature. A survey was conducted to check whether companies know about or apply that technique, and to identify the tools used by companies. This study shows that while the range of possible applications of real options is rather vast, ROA is rarely known by German and British companies and barely applied. One reason might be, that most books and articles are of rather academic nature. This seems to have been realised since books with a focus on practical application have been published recently. The complexity of ROA seems to be a further reason for its low degree of utilisation. Companies tend to use simpler but more comprehensible techniques although these methods have some major drawbacks. However, business science should not end in itself but serve businesses. Therefore, further emphasis has to be put on making real options approachable for practitioners. Inhaltsverzeichnis:Table of Contents: I.Abstract2 II.Acknowledgements3 III.Table of Contents4 IV.List of Figures7 V.List of Abbreviations8 1.Introduction9 2.Characteristics of Investment Decisions11 2.1What Is a Capital Investment?11 2.2Risk and Uncertainty12 3.Tools for Investment Appraisals15 3.1Static Methods15 3.2Discounted Cash Flow Approaches (Dynamic)17 3.3Approaches Which Try to Deal With Risk20 4.The Real Options Approach24 4.1Why Use Real Options to [...]
Author: David T. Larrabee
Publisher: John Wiley & Sons
ISBN: 1118397436
Category : Business & Economics
Languages : en
Pages : 628
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Book Description
Analysis and insights from top thought leaders on a pivotal topic in investing and asset management Valuation is the cornerstone for investment analysis, and a thorough understanding and correct application of valuation methodologies are critical for long-term investing success. Edited by two leading valuation experts from CFA Institute, this book brings together the insights and expertise of some of the most astute and successful investment minds of the past 50 years. From Benjamin Graham, the “father of value investing,” to Aswath Damodaran, you’ll learn what these investment luminaries have to say about investment valuation techniques, including earnings and cash flow analysis. Features the best thinking on valuation from the industry’s masters on the topic, supplemented with dozens of fascinating and instructive real-world examples Comprehensively discusses special valuation situations, such as real options, employee stock options, highly leveraged firms, corporate takeovers, and more Supplies you with the tools you need to successfully navigate and thrive in the ever-changing financial markets Is being produced with the full support and input of CFA Institute, the world’s leading association of investment professionals
Author: Lenos Trigeorgis
Publisher: Bloomsbury Publishing USA
ISBN: 0313020825
Category : Business & Economics
Languages : en
Pages : 382
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Book Description
This compilation integrates various new contributions to the growing real options literature. Recent developments in the valuation of capital investment opportunities seen as real options (e.g. to defer, expand, abandon, or switch) have provided the tools and unlocked the possibilities to revolutionize the field of capital budgeting. The resulting insights, strategies, and techniques enable quantifying the thus far elusive elements of managerial operating flexibility and strategic interactions. These are vital to successfully capitalize on favorable future investment opportunities or limit losses from adverse market developments. This book presents various models and operating strategies, and a variety of applications ranging from acquisitions and divestitures, to natural resource development and pollution compliance. It is intended for both the academic and the professional market. The book's contributions are divided into five parts, covering sections on real options and alternative valuation paradigms for capital investment analysis; on the analysis of general exchange or switching options, and interdependencies among multiple such options; on strategic acquisitions, infrastructure, and foreign investment options; on mean reversion/ alternative formulations in natural resource investments, shipping, and start-up ventures; and on other applications in pollution compliance, land development, flexible manufacturing, and financial default options. Both academic and practitioner interest in these developments is unusually high. The book can serve as supplementary material for the academic market, e.g., in advanced finance courses in option pricing or capital budgeting, in doctoral seminars, and as a library resource. It may also be of interest to the professional market (e.g. corporate planners and finance executives in the oil, pharmaceutical, auto and a variety of other industries), academics from related areas (e.g. decision analysts or economists), as well as to international readers (academics, doctoral students, and professionals).
Author: René Aïd
Publisher: Springer
ISBN: 1493927337
Category : Mathematics
Languages : en
Pages : 431
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Book Description
This volume is a collection of chapters covering the latest developments in applications of financial mathematics and statistics to topics in energy, commodity financial markets and environmental economics. The research presented is based on the presentations and discussions that took place during the Fields Institute Focus Program on Commodities, Energy and Environmental Finance in August 2013. The authors include applied mathematicians, economists and industry practitioners, providing for a multi-disciplinary spectrum of perspectives on the subject. The volume consists of four sections: Electricity Markets; Real Options; Trading in Commodity Markets; and Oligopolistic Models for Energy Production. Taken together, the chapters give a comprehensive summary of the current state of the art in quantitative analysis of commodities and energy finance. The topics covered include structural models of electricity markets, financialization of commodities, valuation of commodity real options, game-theory analysis of exhaustible resource management and analysis of commodity ETFs. The volume also includes two survey articles that provide a source for new researchers interested in getting into these topics.
