MBA & MM Theses

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    Real Options Valuation of a
    (2011-06-23) Tapper, Ulf Anders Staffan
    The shareholder value contributed by new technology is uncertain, making it difficult to decide where, and how much, to invest in its development. In the valuation of a Technology Development Portfolio, different valuation techniques were required depending on project uncertainty. Projects with limited uncertainty (Development projects) were valued using Net Present Value models. Projects with the highest uncertainty (Technology Based projects) were justified by strategic needs, and the Intellectual Capital that emerged was valued at cost. Value Based Research, that bridge Technology Based and Development projects, required Real Options Valuation that recognises the value in probabilities of upside potential and management flexibility. Real Options Valuation of embedded options increased the portfolio value by a factor of 2,8 as compared to NPV, and resulted in project prioritisation aligned to management’s assessment of strategic value. This more holistic approach to technology valuation will enhance management’s investment decisions directed at furthering shareholder wealth.
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    The impact of Black Economic Empowerment transactions on
    (2011-04-15) Jacobs-Nongxa, Nomthunzi
    The purpose of the study is to evaluate the impact of the Black Economic Empowerment (BEE) transaction on shareholder value. In this study a specific reference data of 2002 has been chosen for analysis. The analysis measures and compares various financial ratios before 2002 and after 2002 for those companies that implemented BEE transactions in 2002. This is basically an event study where the event window is in 2002. We have a sample of 33 companies from a population of 103 BEE transactions from listed and unlisted companies. The ratios such as ROI, ROIC, ROE, ROCE, EVA and CVA were calculated for each of the 33 companies before 2002 and after 2002. Test results show there is no statistically significant change in the various ratios. Thus the BEE transactions are adding no significant value to current shareholders in the target companies. The findings have significance for future BEE policy considerations