Real Options

llsms2054  2017-2018  Louvain-la-Neuve

Real Options
5 credits
30.0 h
Q1
Teacher(s)
Iania Leonardo;
Language
English
Prerequisites
  • Contrôle de gestion [ LLSMF2001 ]
  • Corporate Finance [ LLSMS2010 ]
  • Fundamental mathematical and statistical concepts (such as those covered in Mathématiques avancées et fondements d'économétrie [ LECGE1337 ])
  • Advanced Finance [LLSMS2100A or LLSMS2100B]
Main themes
This course will focus on valuation of companies and projects.  The course will cover the following topics:
  • Drivers of corporate value
  • How to build valuation models.
  • Traditional valuation models (DCF,')
  • Real option analysis
Aims

At the end of this learning unit, the student is able to :

1

On successful completion of this programme, each student will acquire the following skills:

  • Knowledge and reasoning: Master an active and integrated command of a multidisciplinary body of knowledge (content, methods, models, conceptual frameworks) essential to act expertly in the various areas of management
  • A scientific and systematic approach: Analyze and resolve problems in multidisciplinary and complex management situations using a scientific and systematic approach
  • Communication and interpersonal skills: Communicate, converse effectively and convincingly with the stakeholders

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled ¿Programmes/courses offering this Teaching Unit¿.
 

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Content
  1. Foundation of Value
  2. Core Valuation Techniques
  3. Advanced Valuation techniques
  4. Real option analysis
Teaching methods
In class lectures. Online forums. Teamwork assignments.
Evaluation methods
Continuous evaluation
  • Date: To be specified later
  • Type of evaluation: assignments
  • Comments:
Evaluation week
  • Oral: No
  • Written: Yes
  • Unavailability or comments: midterms exams and assignments: 50%
Examination session
  • Oral: No
  • Written: Yes
  • Unavailability or comments: 50% of total grade en septembre : 100%
Bibliography
  • Slides based on the two main reference books of the course
  • READINGS : Valuation, Sixth edition, by Koller, Goedhart nad Wessels. Wiley.
    Real options in theory and practice, by Guthrie. Oxford University Press.
Faculty or entity
CLSM


Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Sigle
Credits
Prerequisites
Aims
Master [120] in Business Engineering
INGE2M
5
Master [120] in Business Engineering
INGM2M
5