Publications

Teaching Note for (9-285-053). View Details

Keywords: Privatization; Business Exit or Shutdown; Bids and Bidding; Natural Environment; Energy Industry

March 1989 (Revised April 1998)
Case

Marriott Corporation: The Cost of Capital (Abridged)

Gives students the opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed. View Details

Keywords: Cost of Capital; Mathematical Methods

March 1989 (Revised October 1994)
Case

Philip Morris Companies and Kraft, Inc.

Gives students the opportunity to explore the effect of substantial free cash flow on corporate acquisition and operating strategies. Students are also given the opportunity to extract information from the common stock prices of the participating firms. A variety of... View Details

Keywords: Cash Flow; Strategic Planning; Acquisition; Strategy; Restructuring; Valuation; Stocks

2010
Working Paper

Valuation When Cash Flow Forecasts Are Biased

This paper focuses adaptations to the discount cash flow (DCF) method when valuing forecasted cash flows that are biased measures of expected cash flows. I imagine a simple setting where the expected cash flows equal the forecasted cash flows plus an omitted downside.... View Details

Keywords: Forecasting and Prediction; Cash Flow; Cost of Capital; Performance Expectations; Prejudice and Bias; Valuation

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November 2006 (Revised December 2011)
Case

HCA, Inc. (A)

Focuses on the buyout of HCA by three private equity firms: Bain Capital, KKR, and Merrill Lynch Global Private Equity. It provides an opportunity to discuss a variety of issues related to leveraged buyouts including the process, the role of private equity, the... View Details

Keywords: Leveraged Buyouts; Private Equity; Investment; Business and Shareholder Relations; Conflict and Resolution; Valuation

November 2001 (Revised May 2002)
Supplement

Whirlpool Europe

September 2001 (Revised December 2001)
Supplement

Eskimo Pie Corporation (Abridged)

Spreadsheet to (9-202-037). Download only. View Details

May 2000 (Revised January 2003)
Case

Health Development Corporation

Health Development Corp. (HDC) owns and operates health clubs in the Greater Boston area. HDC engaged a local investment banker to explore a sale of the company. The most likely buyer views HDC's prior purchase of real estate as a negative. HDC's management is... View Details

Keywords: Cash Flow; Property; Business Exit or Shutdown; Valuation; Value; Decisions; Health Industry; Boston

1986
Book

Managing Big Business: Essays from the Business History Review

By: R. S. Tedlow and R. John Jr.

Keywords: Business History; Management

January–February 2000
Article

Patterns of Disruption in Retailing

By: Clayton M. Christensen and R. S. Tedlow

Keywords: Disruption; Sales

February 1998 (Revised March 1998)
Case

Marriott Corporation: The Cost of Capital

Presents recommendations for hurdle rates of Marriott's divisions to select by discounting appropriate cash flows by the appropriate hurdle rate for each division. View Details

Keywords: Cost of Capital; Asset Pricing

November 1991 (Revised December 1993)
Case

Southland Corp. (C)

Examines pre-packaged bankruptcy of Southland. View Details

Keywords: Insolvency and Bankruptcy

March 1989 (Revised April 1990)
Teaching Note

Interest Rate Exercises, Teaching Note

Keywords: Interest Rates

August 2004
Class Lecture

Know Your Worth: Critical Valuations That Work

Keywords: Valuation

January 2001
Supplement

Pharmacyclics: Financing Research and Development

Spreadsheet to (9-201-056). Presents exhibits 2, 3, 4, 9, 10, and 11. Download only. View Details

10 Apr 2006
Research & Ideas

American Auto’s Troubled Road

consumers and by the financial markets." HBS professor Richard Tedlow sees a broad fallout should the U.S. auto industry slide into permanent second-class status. "There's a dilemma when you see... View Details

Keywords: by Garry Emmons; Manufacturing; Transportation; Auto

July 1990
Article

'Giants Lose Three Straight; Nazi Armies Take Paris': Commencement Week for the Harvard Class of 1940

By: R. S. Tedlow and Reed Hundt

Keywords: Education; Boston

February 1998
Teaching Note

Marriott Corporation: The Cost of Capital (Abridged), Teaching Note

Teaching Note for (9-289-047). View Details

January 1997 (Revised January 2003)
Teaching Note

Eskimo Pie Corporation TN

Teaching Note for (9-293-084). View Details

Keywords: Food and Beverage Industry

May 1995 (Revised October 1995)
Background Note

Introduction to Cash Flow Valuation Methods

Provides an introduction to three cash flow valuation methods. The three methods differ in their measure of cash flows and the discount rate applied to those cash flows. The names for the three methods correspond to the type of cash flow that is used in the valuation:... View Details

Keywords: Cash Flow; Valuation