CNS Company - The Case Centre

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Case

Reference no. 9B04N004

Subject category: Finance, Accounting and Control

Authors: Christopher K Anderson (Ivey Business School, Western University); James E Hatch (Ivey Business School, Western University); Christen Hagelund (Ivey Publishing, Western University); Soren Christensen (Ivey Publishing, Western University)

Published by: Ivey Publishing

Originally published in: 2004

Version: 2005-08-08

Length: 12 pages

Data source: Published sources

Topics: Valuation; Real options; Data analysis

Share a link: https://casecent.re/p/14343

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Abstract

CNS is a small biotech company. The founder of the company is deciding if it's worth applying for phase (I) approval that will allow the company to continue its research. He must determine the value of the research. Using the traditional DFC valuation method, he is not sure if this captures all of the value of the research and must decide if either the Black-Scholes or binomial model would more accurately determine the value.

Location:

Denmark

Industry:

Chemicals and allied products

Size:

Small

Other setting(s):

2002