Case Problems in Finance

Description

Case Problems in Finance is a Harvard case course presenting real business situations that pose debatable alternative courses of action. The cases contain problems that can be narrowed but not always settled by the usual techniques of financial analysis. It will teach students to discover ways of thinking that are productive in handling different types of managerial problems intelligently. The cases are grouped by major topics: financial analysis and forecasting, cost of capital, working capital management, capital budgeting, dividend policy, debt policy, financial execution, and mergers and restructuring. Introduction Acknowledgements Contents Part One: Financing Current Operations Introductory Exercises Financial Ratio Analysis Assessing a Firm’s Future Financial Heath Forecasting Pro Forma Financial Statements Tire City, Inc. Estimating Funds Requirements—Short-Term Sources of Funds Funding Growth Butler Lumber Company Note on Bank Loans Funding Seasonal Needs Toy World, Inc. Funding Cyclical Needs SureCut Shears, Inc. Managing Working Capital Dell’s Working Capital Cash Budgeting Hampton Machine Tool Company Part Two: Capital Structure, Long-Term Financing, and Risk Management Debt Policing and Long-Term Financing Target Debt Policy E. I. Du Pont de Nemours and Company (1983) Costs of Financial Distress Williams, 2002 The Loewen Group, Inc. (Abridged) Capital Structure Decisions American Home Products Corporation Debt Policy at UST Inc. Diageo plc Earnings Impact of Leverage Continental Carriers, Inc. Pricing Debt Instruments Fixed Income Valuation Credit Ratings and Access to Debt Markets Hospital Corporation of America (A) Equity Financing Stone Container Corporation (A) Equity-Linked Securities MCI Communications Corporation (1983) Cox Communications, Inc. (1999) Cross-Border Financing Compañías Telefónicas de Chile Cash Distribution Dividend Policy at FPL Group, Inc. (A) Recapitalization Ford Motor Company’s Value Enhancement Plan (A) Event Risk Marriott Corporation (A) Derivative Instruments and Risk Management Basic Derivative Instruments Introduction to Derivative Instruments Valuing Derivatives Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged) Interest Rate Derivatives Student Educational Loan Fund, Inc. (Abridged) Options and Security Design Arley Merchandise Corporation Pension Fund Risks Management The Pension Plan of Bethlehem Steel (2001) Risk Identification and Selection of Risk-Management Techniques Tiffany & Company (1993) United Grain Growers Limited (A) Part Three: Valuation and Investment Valuing and Selecting Investment Opportunities Discounted Cash Flow Analysis Valuing Capital Investment Projects Introduction to Decision Trees Merck & Company: Evaluating a Drug Licensing Opportunity Basic Value Creation Tree Values Identifying Incremental Cash Flows The Super Project Forecasting Expected Cash Flows NetFlix.com, Inc. A-Rod: Signing the Best Player in Baseball Capital Budgeting Ocean Carriers Whirlpool Europe Multiples Health Development Corporation Cost of Capital and Valuation Cost of Capital Diversification, the Capital Asset Pricing Model, and the Cost of Equity Capital Capital Asset Pricing Model and the Cost of Equity Capital Cost of Capital at Ameritrade Risk and the Opportunity Cost of Capital Pioneer Petroleum Corporation Leveraged Betas Leveraged Betas and the Cost of Equity Weighted Average Cost of Capital Marriott Corporation: The Cost of Capital (Abridged) Lex Service PLC—Cost of Capital Valuation Alternatives Sampa Video, Inc. Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows Advanced Valuation Valuing Projects and Businesses Radio One, Inc. American Chemical Corporation Valuing Companies Adecco SA’s Acquisition of Olsten Corporation Cooper Industries, Inc. Interco Initial Public Offering Eskimo Pie Corporation (Abridged) Netscape’s Initial Public Offering Hostile Takeovers Gulf Oil Corporation—Takeover Philip Morris Companies and Kraft, Inc. Highly Leveraged Transactions John M. Case Company Congoleum Corporation (Abridged) RJR Nabisco Real Options Laura Martin: Real Option and the Cable Industry Arundel Partners: The Sequel Project Capital Projects as Real Options: An Introduction Part Four: Review and Synthesis Integrated Financial Decisions and Comprehensive Review Staged Equity Financing Pharmacyclics: Financing Research and Development Business Plan Evaluation Valuing Project Achieve Management Buyout Seagate Technology Buyout Merger and Acquisition Friendly Cards, Inc. Pinkerton’s (A) Vodafone AirTouch’s Bid for Mannesmann Index of Cases