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Valuation of the Liability Structure by Real Options

Valuation of the Liability Structure by Real Options
English | 2022 | ISBN: 1786307340, 978-1786307347 | 199 pages | True PDF EPUB | 8.17 MB
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.