Creating Questions and Solutions
Students are expected to create two (2) questions, in which one question is on the Valuation of Firms and one
question is on Real Options, as well as the accompanying solutions to each question:
The question on Valuation of Firms can be about DCF analysis, valuation multiples, or some combination of the
two.
The question on real options can be about decision tree analysis, binomial trees, risk-neutral probability, or
some combination of the three.
This is an opportunity for you to apply the models and concepts we learned in class to a setting of your choice.
For instance, how to value the share of a company undergoing an initial public offering, or how to value a
merger based on the combined value of two companies? You can also be creative and have a little fun with the setting! Why not focus on a fictional company in your favorite fictional universe (e.g. Stark Industries from the
MCU)?