Company’s Source of Financing Valuation Using Strategic Real Option Approach

The article is devoted to the investigation and evaluation of the company's expanded NPV depending on its available financing options using real option approach that synthesize the newest developments in corporate finance, real options and game theory. It enables to estimate the value of managerial decisions, and thus is suitable to valuing strategy and its flexibility.

Keywords: strategic real options, game theory, strategic planning, strategy valuation, real option effect, expanded net present value (ENPV), discounted cash flow (DCF), terminal value (TV), free cash flow to equity (FCFE), exercise value (EV).

Publisher: National University of Kyiv-Mohyla Academy, «Scientific notes of NaUKMA» Journal, vol. 159, Economics, 2014, ISSN: 1996-5931, p. 78-80.

Dmytro Shestakov

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