equal to 2% of Disney’s net income in excess of 9% of stockholders’ equity, and a ten-year option on two million shares exercisable at Disney’s current market price of $14. While Eisner’s contract provided for guaranteed payments with a present value of only $3.9 million, its expected value was, of course, much greater. The expected value of his options, based on the Black-Scholes option pricing model, was $16 million. I also estimate that the expected value of his total contract, including
Words: 1011 - Pages: 5
settlement amounts. 3. Relevancy: the valuation is the most relevant at the date and time of reporting. Caveats of fair value accounting: 1. Reliability in illiquid markets: for assets or liabilities which are illiquid, the lack of appropriate models to determine fair value may result in unnecessary arguments and economic costs. 2. Facilitating unnecessary euphoria, which may arguably contribute to the company/ asset’s
Words: 1011 - Pages: 5
CAPITAL BUDGETING: ADVANTAGES AND LIMITATIONS. SEPTEMBER 2012 CHAPTER ONE INTRODUCTION 1.0 Background Study Capital budgeting is the process by which firms determine how to invest their capital. Included in this process are the decisions to invest in new projects, reassess the amount of capital already invested in existing projects, allocate and ration capital
Words: 7612 - Pages: 31
http://www.easy-strategy.com/strategy-gurus.html Home Sitemap Contact Us Articles Speaker Seminars Consulting Negotiation War Room Osama El-Kadi Easy Strategy Videos Stories Gurus 36 Strategies Art of War News Build a Site My Books History Management & Strategy Gurus and Masters The complete A to Z Guide ABCDEFGHIJKLMNOPQRSTUVWXYZ A point of clarification before you start your journey with the gurus and masters: a Guru is a person who is very knowledgeable and teaches a particular strategy
Words: 8421 - Pages: 34
MODERN PORTFOLIO THEORY A N D INVESTMENT ANALYSIS EIGHTH EDITION INTERNATIONAL STUDENT VERSION EDWIN J. ELTON Leonard N. Stern School of Business New York University MARTIN J. GRUBER Leonard N. Stern School of Business New York University STEPHEN J. BROWN Leonard N. Stern School of Business New York University WILLIAM N. GOETZMANN Yale University WILEY John Wiley & Sons, Inc. Contents About the Authors Preface Part 1 Chapter 1 ix vii INTRODUCTION INTRODUCTION
Words: 1893 - Pages: 8
Real Options in Corporate Finance Ellen Bjarnadóttir Thesis of 30 ECTS credits Master of Science in Financial Engineering June 2013 i Real Options in Corporate Finance (Notkun Raunvilnana við töku Fjárfestingaákvarðana) Ellen Bjarnadóttir Thesis of 30 ECTS credits submitted to the School of Science and Engineering at Reykjavík University in partial fulfillment of the requirements for the degree of Master of Science in Financial Engineering June 2013 Supervisor: Dr.Sverrir Ólafsson
Words: 6715 - Pages: 27
bonus equal to 2% of Disney’s net income in excess of 9% of stockholders’ equity, and a tenyear option on two million shares exercisable at Disney’s current market price of $14. While Eisner’s contract provided for guaranteed payments with a present value of only $3.9 million, its expected value was, of course, much greater. The expected value of his options, based on the Black-Scholes option pricing model, was $16 million. I also estimate that the expected value of his total contract, including bonus
Words: 1008 - Pages: 5
Australian School of Business School of Banking and Finance FINS 2624 Portfolio Management Course Outline Semester 2, 2012 Part A: Course-Specific Information Part B: Key Policies, Student Responsibilities and Support Table of Contents 0 PART A: COURSE-SPECIFIC INFORMATION 1 2 2.1 2.2 2.3 2.4 2.5 3 STAFF CONTACT DETAILS COURSE DETAILS Teaching Times and Locations Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning Outcomes LEARNING AND TEACHING
Words: 4844 - Pages: 20
bonus equal to 2% of Disney’s net income in excess of 9% of stockholders’ equity, and a tenyear option on two million shares exercisable at Disney’s current market price of $14. While Eisner’s contract provided for guaranteed payments with a present value of only $3.9 million, its expected value was, of course, much greater. The expected value of his options, based on the Black-Scholes option pricing model, was $16 million. I also estimate that the expected value of his total contract, including bonus
Words: 1036 - Pages: 5
if bankruptcy of Japanese listed companies can be predicted using data from 1992 to 2005. We find that the traditional measures, such as Altman’s (J Finance 23:589–609, 1968) Z-score, Ohlson’s (J Accounting Res 18:109–131, 1980) O-score and the option pricing theory-based distance-todefault, previously developed for the U.S. market, are also individually useful for the Japanese market. Moreover, the predictive power is substantially enhanced when these measures are combined. Based on the unique Japanese
Words: 13066 - Pages: 53
