In this class, we completed our discussion of real options, starting with an analysis of why financial flexibility can be viewed as an option, and how to value it. We then turned our attention to distressed equity, and why stock in a highly levered, money losing firm can become an option, and why it matters for investors. We ended the class by looking at the sad history of value destruction in acquisitions, and set up the discussion for why.

Post Class Test:
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