Information asymmetry and valuation of financial distressed firms : A clinical case - We provide clinical evidence of valuation and information asymmetry problems for Intercall, beginning with the firm’s 2000 development project into cellular communication. Investors modified their valuation of Intercall growth opportunities after the company announced an important equity issue. The stock fall, the issue was postponed, and Intercall experienced financial distress. This clinical paper illustrates difficulties for valuing new project investment particularly in a fast-changing, technology-based industry, with intangible assets. We show how and why investors revised their anticipations and analyze valuation of growth opportunities and costs of distress in this context.