Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )

• Personneldecisions(managementhastobehiredand
  put in place).

Based onthese inputs,we had thefollowinginputs to the
option pricing model.

Weusedarisklessrateof5%andderivedtheexpectedup
and down movements from the standard deviation.
15

The binomial tree is presented inFigure 12.5.

FIGURE 12.5Binomial Tree—AmBev Expansion Option