Publications

April 1995 (Revised March 1997)
Background Note

Introduction to Derivative Instruments

By: W. Carl Kester and Kendall Backstrand

Provides an elementary introduction to three major classes of derivative instruments: options, forwards and futures, and swaps. View Details

Keywords: Financial Instruments

January 1995 (Revised August 1997)
Background Note

Cross-Border Valuation

By: Kenneth A. Froot and W. Carl Kester

Provides a review of valuation techniques used to assess cross-border investments. Discusses the discounting of free cash flows with a weighted average cost of capital and the use of adjusted present value. Special concerns such as foreign-exchange risk, country risks,... View Details

Keywords: Valuation; Cross-Cultural and Cross-Border Issues

January 1995
Case

Keller Fund's Option Investment Strategies, The

A closed-end mutual fund's decision to study option trading provides an opportunity to study the profit profile and pricing of multiple option investment strategies (e.g., buy a call, buy a put, write a call, buy stock-write call, etc.). This case is designed to... View Details

Keywords: Investment Funds; Stock Options; Profit; Price; Strategy; Financial Services Industry

December 1994 (Revised June 1995)
Case

Tiffany & Co.--1993

By: W. Carl Kester and Kendall Backstrand

The restructuring of Tiffany's retailing agreement with Mitsukoshi Ltd. in 1993 exposed Tiffany to substantial yen/dollar exchange rate volatility that it had not previously faced. This new exposure requires Tiffany to establish risk management policies and practices.... View Details

Keywords: Restructuring; Currency Exchange Rate; Management Practices and Processes; Risk Management; Agreements and Arrangements; Situation or Environment

29 Nov 1994
Lecture

Regional Patterns of Corporate Governance: Conflict or Convergence in the 21st Century

Keywords: Corporate Governance; Conflict and Resolution

November 1994 (Revised February 1996)
Case

Toy World, Inc.

A shift from seasonal to level production of toys will change the seasonal cycle of Toy World's working capital needs and necessitate new bank credit arrangements. A rewritten version of an earlier case. View Details

Keywords: Working Capital; Business Cycles; Cash Flow; Forecasting and Prediction; Investment Funds; Financial Statements

28 Oct 1994
Lecture

Japanese and American Corporate Governance: Converging to Best Practice?

Keywords: Corporate Governance; Management Practices and Processes

13 Oct 1994
Lecture

Use of Convertible and Warrant Bonds by Japanese Firms: Risk Shifting or Delayed Equity?

Keywords: Bonds; Risk and Uncertainty; Equity; Japan

May 1994 (Revised May 1997)
Case

Nelson Paper Products, Inc.

A comprehensive review case that entails both investment and financing decisions. Students must value an acquisitions opportunity and determine how Nelson Paper ought to finance both the acquisition and its regular capital expenditures program. View Details

Keywords: Cash Flow; Financing and Loans; Investment; Acquisition; Financial Strategy