Chapter 17: Finance and Corporate Strategy Copyright © Prentice Hall Inc.. Author: Nick Bagley, bdellaSoft, Inc.. Objective Understanding: Mergers & Acquisitions Spinoffs Real Options..
Trang 1Chapter 17: Finance and
Corporate Strategy
Copyright © Prentice Hall Inc 2000 Author: Nick Bagley, bdellaSoft, Inc.
Objective
Understanding:
Mergers & Acquisitions
Spinoffs Real Options
Trang 2Chapter 17 Contents
• 17.2 Spinoffs
• 17.3 Investing in Real Options
Trang 3Derwyn Productions:
Decision Tree (yes, no)
Buy the movie
rights to book?
(Cost $1 Million)
(Probability = 0.5) Make the Movie? (NPV -$4 Million)
(Probability = 0.5) Make the movie? (NPV $4 Million) Book a
Success?
Trang 4Raider’s Takeover of Target
Using Options: Computation
the option’s strike, so the simplified BS
equation may be used
$(8-6) millions = $2 millions (do it)
million 98
7
$ 2
1
* 20 0
* 000 ,
000 ,
100
$
≈
π π
S C