Wellington Synthetics

Published 01 Jan 2004
Reference 5182
Industry Oil & Energy
Region North America
Length 3 page(s)
Summary

This case considers the valuation of entrepreneurial start-ups possessing follow-on technological opportunities as well as abandonment options for their project.

Teaching objectives

The case involves the use of real options techniques (e.g., Black-Scholes, binomial methods incorporating risk neutral valuation, etc.) in valuing entrepreneurial ventures.

Keywords
  • AR2004
  • AR0304
  • RD0104
  • REAL OPTIONS
  • VENTURE START-UP
  • ENTREPRENEURSHIP
  • VALUATION