Corporate Finance Theory Using Real Options (The book + Excel files with VBA code)
Free!
Minimum price
$10.00
Suggested price

Corporate Finance Theory Using Real Options

About the Book

This book aims to introduce readers to the fascinating world of real options and its applications in corporate finance problems. I start with simple models to introduce the basic math and then consider problems which add realistic features. Throughout, I provide guidance on how to actually implement the models in ExcelTM using Visual Programming for Applications (VBA). I start with the simple option to decide on the timing of investment which was introduced in the literature by McDonald and Siegel (1986). This model is without any financing considerations. I then focus on a model introduced by Leland (1994) which analyzes capital structure (financing) decisions and the option of equity holders to time default. This model, does not however consider an investment option. Then, the two frameworks are combined to study the option to invest and the optimal financing of the option to investment. This model is essentially the model analyzed by Mauer and Sarkar (2005). I show how they have also analyzed agency conflicts arising from equity holders choice of investment timing that does not cater for debt holders’ interests. The book also provides an introduction to pricing within finite horizon models using the binomial tree.

I aim to extend future extensions of the book generalizing the previous mentioned frameworks to consider two stages of investments and lumpy financing, consider the interesting implications of priority rules of debt and agency considerations between the claimholders (see Hackbarth and Mauer, 2012).  I also plan to introduce readers to compound options using binomial trees. The plan is also to add models with multiple stochastic variables and introduce readers to simulation in option pricing.    

 

References

Hackbarth, D., & Mauer, D. C. (2012). Optimal priority structure, capital structure, and investment. The Review of Financial Studies, 25(3), 747-796.

Leland, H. E. (1994). Corporate debt value, bond covenants, and optimal capital structure. The journal of finance, 49(4), 1213-1252.

McDonald, R., & Siegel, D. (1986). The value of waiting to invest. The quarterly journal of economics, 101(4), 707-727.

Mauer, D. C., & Sarkar, S. (2005). Real options, agency conflicts, and optimal capital structure. Journal of banking & Finance, 29(6), 1405-1428.

About the Author

NICOS KOUSSIS
NICOS KOUSSIS

Dr. Nicos Koussis holds a PhD in Finance from the University of Cyprus in the area of real options. He has publications in highly ranked refereed journals like the Journal of Banking and Finance and the European Journal of Operational Research among others. He is passionate with research, as well as in applying academic knowledge in practice to help companies make better decisions.

His research covers optimal investment, financing and dividend decisions with default risk, mergers and acquisitions and trade credit. A common factor in all of his research is that he is using a real options approach!. He has applied his research in fund management, software development and the valuation of new ventures and securities.  

Packages

The book + Excel files with VBA code

This package includes the book plus the Excel files with VBA code.

  • PDF

  • English

Free!
Minimum price
$10.00
Suggested price
The Book
  • PDF

  • English

$15.00
Minimum price
$20.00
Suggested price

The Leanpub 60 Day 100% Happiness Guarantee

Within 60 days of purchase you can get a 100% refund on any Leanpub purchase, in two clicks.

Now, this is technically risky for us, since you'll have the book or course files either way. But we're so confident in our products and services, and in our authors and readers, that we're happy to offer a full money back guarantee for everything we sell.

You can only find out how good something is by trying it, and because of our 100% money back guarantee there's literally no risk to do so!

So, there's no reason not to click the Add to Cart button, is there?

See full terms...

80% Royalties. Earn $16 on a $20 book.

We pay 80% royalties. That's not a typo: you earn $16 on a $20 sale. If we sell 5000 non-refunded copies of your book or course for $20, you'll earn $80,000.

(Yes, some authors have already earned much more than that on Leanpub.)

In fact, authors have earnedover $13 millionwriting, publishing and selling on Leanpub.

Learn more about writing on Leanpub

Free Updates. DRM Free.

If you buy a Leanpub book, you get free updates for as long as the author updates the book! Many authors use Leanpub to publish their books in-progress, while they are writing them. All readers get free updates, regardless of when they bought the book or how much they paid (including free).

Most Leanpub books are available in PDF (for computers) and EPUB (for phones, tablets and Kindle). The formats that a book includes are shown at the top right corner of this page.

Finally, Leanpub books don't have any DRM copy-protection nonsense, so you can easily read them on any supported device.

Learn more about Leanpub's ebook formats and where to read them

Write and Publish on Leanpub

You can use Leanpub to easily write, publish and sell in-progress and completed ebooks and online courses!

Leanpub is a powerful platform for serious authors, combining a simple, elegant writing and publishing workflow with a store focused on selling in-progress ebooks.

Leanpub is a magical typewriter for authors: just write in plain text, and to publish your ebook, just click a button. (Or, if you are producing your ebook your own way, you can even upload your own PDF and/or EPUB files and then publish with one click!) It really is that easy.

Learn more about writing on Leanpub