The Ability to Value Assets Accurately is at the Heart of the Essay

The Ability to Value Assets Accurately is at the Heart of the Discipline of Finance. Discuss - Essay Example Inappropriate asset valuation would fail to determine the actual status of the business performance which would adversely affect the formulation of business strategies. According to Brigham & Daves (2009), â€Å"Real options are opportunities for management to change the timing, scale, or other aspects of an investment in response to changes in market conditions.† (Brigham & Daves, 2009, p.490). Since the real options are concerned with the real assets such as plants, fixtures, and land, it enables the management to take timely and appropriate decisions regarding investment strategies. Brigham and Daves also opine that formulation of model and estimation of input is necessary for the valuation of real options in investments. It will be a cumbersome task for the management to determine the exact value of real options in investment since it includes intangible components like contract, decision to expand or abandon etc. Even though exact valuation of real options is not possible, it helps to determine the sustainability of the proposed project. According to the writers, in order to valuate the real options more accurately, it is better to trea t the valuation with a ‘standard model for financial option’. Similarly usage of ‘discounted cash flow valuation and decision tree analysis’ are also better methods in order to increase the accuracy of valuation of real options (Brigham & Daves, 2009, pp.490-491). If the value of underlying asset (an asset underlies and offers value to the particular security or investment) can be properly estimated, then it is possible to find out the value of real options in investment almost accurately. Likewise, while dealing with valuation of real options, it is essential to represent the payouts precisely in order to bring out maximum relevant facts in the valuation process. The Black-Scholes model is a comparatively better method to determine the theoretical value of real

Writing a screenplay for a short Assignment Example | Topics and Well Written Essays - 1250 words

Writing a screenplay for a short - Assignment Example He then addresses the priest. Law and order are simply what needs to be done. Failure to follow the law leads to punitive measures. That is why you are in this cell. You did not follow the law and so you have to face the consequences. Even†¦(The first inmate disrupts him) The first inmate seems upset and starts moving up and down the cell. He seems to be in deep thoughts. He goes and leans on the wall and starts shaking his head. The second inmate walks towards him and shouts to him. The officer takes a glance at the priest and moves towards him. He does not seem convinced with the explanation the priest gives him. He takes the notebook and peruses it. He seems not to get the meaning of the writings inside. He takes the priests Bible and checks the cover. It is torn, and so he smiles meekly The priest seems hurt but grabs the notebook and the Bible from the pastor. He then turns to the prisoners who are sited at the corner of the cell. The officer grabs his hands and pulls him towards the door. Please officer let me say my final word to these inmates. They need encouragement from people like me, for consolation of the hassles they go through in this cell. You are one of the people who should treat these brothers as your friends instead you mistreat them. The Bible requires us to show mercy and compassion to all our friends. God shows us His mercies, and we must reciprocate to our friends. I will leave you with a few words for encouragement and hope for tomorrow. Keep your trust and faith in the Lord because only He can get you out of this damn place. Never forget to pray and commit all your wishes to Him. Also†¦ The priest hesitates as some noise is heard from outside the cell. Loud bangs can be heard from other prison cells as the officers try to stop the prisoners from shouting. Everyone from the room seems shaken. The officer is confused and does not know if he should get out or stay in the cell. As