Alessandri, Todd M.; Lander, Diane M.; Bettis, Richard A. - In: Real options theory, (pp. 459-484). 2007
Strategy is ultimately aimed at creating shareholder value. We examine the relationship among intrinsic (DCF) value, market value, and the value of growth options using a “perfect foresight” model. Our findings suggest that Kester's (1984) initial assessment of growth option values may not...
