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Introducing students to the real option approach to capital budgeting

Show simple item record Lander, Diane M. Pettengill, Glenn N. 2011-01-27T15:43:42Z 2011-01-27T15:43:42Z 2003
dc.description Author's Original
dc.description.abstract The real option approach to capital budgeting has gained acceptance in the business community and is now addressed in Financial Management textbooks and Corporate Finance courses. Real option valuation can be a challenge for both students and instructors. Using two real options examples, a Black-Scholes growth (call) option and a binomial abandonment (put) option, we discuss possible student questions and areas of confusion, potential teaching issues, and basic connections the instructor may need to help students make. We conclude by providing suggestions and a list of resources for facilitating student learning. A revised version of this paper has since been published in the Journal of the Academy of Business Education. Please use this version in your citations. en_US
dc.format.extent 389317 bytes en_US
dc.language.iso en_US en_US
dc.publisher Southern New Hampshire University en_US
dc.relation.requires Adobe Acrobat Reader en_US
dc.rights The Academy of Business Education retains all ownership rights. Further reproduction in violation of copyright is prohibited en_US
dc.subject.other finance pedagogy en_US
dc.subject.other real options en_US
dc.subject.other capital budgeting en_US
dc.title Introducing students to the real option approach to capital budgeting en_US
dc.type Working Paper en_US
dc.description.bibliographicCitation Lander, D.M. and Pettengill, G.N. 2007. Introducing Students to the Real Option Approach to Capital Budgeting. Journal of the Academy of Business Education, 8, 49-60 en_US
dc.digSpecs PDF/A-1b en_US
dc.format.mediaType application/pdf en_US
dc.rightsHolder Academy of Business Education

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