Spina, Kevin (A.A. 2022/2023) Real options for investment decision making: evaluating Porsche's strategic flexibility. Tesi di Laurea in Asset pricing, Luiss Guido Carli, relatore Giacomo Morelli, pp. 181. [Master's Degree Thesis]

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Abstract/Index

Real options approach and its relevance in investment decision-making. Concept of real options. Orthodox theory vs managerial flexibility: the real option theory. MArket efficiency, optimum investment timing and investment-uncertainty relationship: which evidence for real option? Gambling and behavioral biases: which linkage with real options? Strategic decision-making with real options. Real option pricing. Useful application of the theory: a corporate finance prospective. Types of real options. Debt, rating and borrower's credit spread. Advancements on cost of capital estimation: is debt "sensitive" in an uncertain scenario? Equity and debt as payoff on options: focus on risky debt. Valuation on Porsche's flexibility strategy: is real option model robust? Porsche corporate strategy: horizon one. Porsche transformational strategy: horizon two. Porsche unconventional strategy: horizon three. The cost of capital of Porsche AG and corporate structure. The current valuation of Porsche AG and IONITY GmbH. The uncertainty in the market: implied volatility. The options application.

References

Bibliografia: pp. 155-160.

Thesis Type:	Master's Degree Thesis
Institution:	Luiss Guido Carli
Degree Program:	Master's Degree Programs > Master's Degree program in Corporate Finance, English language (LM-77)
Chair:	Asset pricing
Thesis Supervisor:	Morelli, Giacomo
Thesis Co-Supervisor:	Murro, Pierluigi
Academic Year:	2022/2023
Session:	Extraordinary
Deposited by:	Alessandro Perfetti
Date Deposited:	10 Jul 2024 09:58
Last Modified:	10 Jul 2024 09:58
URI:	https://tesi.luiss.it/id/eprint/39261

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