Sequential Growth Option and the Value of the Firm: a Real Options Approach

S.W. Chang

Working Papers from University of Southampton - Department of Accounting and Management Science

Abstract: The purpose of this paper is to value a firm with sequential growth options in two types of uncertainty, 'uncertain cash flow' and 'uncertain investment yield'. The paper shows that such a firm can be valued by the real options approach, given the firm's cash process, investment yiel process and investment policy.

Keywords: FIRMS; INVESTMENTS; SIMULATION (search for similar items in EconPapers)
JEL-codes: D90 D92 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:fth:sotoam:98-141

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