Article ID Journal Published Year Pages File Type
981906 Procedia Economics and Finance 2013 10 Pages PDF
Abstract

The value of managerial flexibility appears to play a pivotal role nowadays, given the transition nature of Latvian economy. Overall aim of the research is to carry out Real Options Valuation (ROV) based on Scenario Planning, thereby identifying value maximizing decisions regarding the Business Unit of the Latvian Company. Having combined Scenario planning with Monte Carlo simulation and Risk-Neutral Probability-based ROV with alternative strategies of Company, authors provided a solution to the company's problem at hand. The flow chart of ROV application has been created which would be a useful “road map” for Latvian practitioners in time of economic uncertainties.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics