Session 24: Option to Expand, Financial Flexibility & Distressed Equity

In this session, we started by looking at the option to expand and how it explains why big data and platforms can have premium value sometimes, and what conditions need to hold for that premium to be large. We then looked at the option to abandon and why firms that have more flexible business models can have higher value. We closed by looking at equity in deeply distressed and indebted companies as options.
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Corporate,Finance,