Publications

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Introduction

By: Carliss Y. Baldwin

The purpose of this series of notes is to define the key "drivers" of the fundamental value of equity and to illustrate how these drivers determine the future cash flows and the "present value pattern" of the underlying common stock. The series includes one technical... View Details

Keywords: Equity; Cash Flow; Valuation; Investment; Investment Return; Cost; Capital

December 1997
Case

Fixed Income Valuation

By: W. Carl Kester

A collection of problems that introduces students to the use of discounted cash flow analysis in the valuation of fixed income securities. Students are required to estimate bond prices and yields to maturity, among other items. View Details

Keywords: Valuation; Cash Flow; Bonds

30 Mar 2020
Video

Crisis Management for Leaders - Program 2, Session 1

September 2003
Case

Valuing a Cross-Border LBO: Bidding on the Yell Group

By: Mihir A. Desai, Paolo Notarnicola and Mark Veblen

A team of private equity investors must value the leveraged buyout of a Yellow Pages business that operated in both the United States and the United Kingdom. In the process, they must wrestle with issues of how to conduct cross-border valuations and how to value a... View Details

Keywords: Leveraged Buyouts; Cash Flow; Private Equity; Cross-Cultural and Cross-Border Issues; Valuation

April 2012
Background Note

Note: Net Cash, Share Repurchases and EPS Growth

By: William E. Fruhan Jr.

How companies with large net cash positions can enhance earnings/share through share repurchase in an environment of low interest rates. View Details

Keywords: Stock Shares; Corporate Finance

September 2000 (Revised January 2016)
Case

Netflix (2000)

By: E. Scott Mayfield

The CEO of a successful Internet start-up must decide whether to delay the company's initial public offering following a significant decline in the NASDAQ market during the spring of 2000. The company's CFO is asked to reevaluate the company's projected cash flow needs... View Details

Keywords: Business Model; Contracts; Initial Public Offering; Cash Flow; Service Delivery; Financial Strategy; Web Services Industry

September 1987 (Revised November 1992)
Background Note

Note on Operating Exposure to Exchange-Rate Changes

By: Timothy A. Luehrman

Describes the effects on operating cash flows of a real change in exchange rates. Describes different elements of operating exposure and includes illustrative examples. View Details

Keywords: Currency Exchange Rate; Fluctuation

21 May 2019
News

Making Change Payments, Perspectives, and Politics

June 1992
Case

Arundel Partners: The Sequel Project

By: Timothy A. Luehrman and William A. Teichner

A group of investors is considering buying the sequel rights for a portfolio of feature films. They need to determine how much to offer to pay and how to structure a contract with one or more major U.S. film studios. The case contains cash flow estimates for all major... View Details

Keywords: Rights; Debt Securities; Contracts; Cash Flow; Valuation; Capital Budgeting; Entertainment and Recreation Industry; Motion Pictures and Video Industry; United States

27 Jan 2011
News

How to keep audit committees in the know

July 1988 (Revised May 1989)
Background Note

On the Economics of a Parking Garage

By: David E. Bell

Introduces notions of cash flow, net present value, and internal rate of return by estimating the profitability of a parking garage. View Details

Keywords: Business Earnings; Corporate Finance; Auto Industry; Service Industry

Find at Harvard

February 1981 (Revised June 1993)
Case

Harris Seafoods, Inc.

By: William E. Fruhan Jr. and William A. Sahlman

Presents data relevant to a major capital expenditure--the construction of a shrimp plant. Designed to test student's ability to identify relevant cash flows, to estimate the cost of capital, and to decide whether or not to invest. View Details

Keywords: Decision Making; Cash Flow; Cost of Capital; Factories, Labs, and Plants; Food and Beverage Industry; Agriculture and Agribusiness Industry

June 2017
Case

AT&T Versus Verizon: A Financial Comparison

By: V.G. Narayanan and Joel L. Heilprin

This case asks students to prepare a report comparing the financial and operating performance of AT&T and Verizon. Taking the perspective of a communications industry analyst, they must also consider the differences between and implications of the companies' business... View Details

Keywords: Financial Statements; Operations; Analysis; Business Model; Accounting; Performance Effectiveness; Telecommunications Industry

31 Mar 2020
Video

Crisis Management for Leaders - Program 2, Session 2

18 Feb 2013
Research & Ideas

Breaking Through a Growth Stall

evaluate business development opportunities. Driven by cash needs, they may call this "experimentation," but in effect they tell salespeople to "go forth and multiply!" By selling to anyone, though, ventures fragment... View Details

Keywords: by Sean Silverthorne

Research Summary

The Benefits of Selective Disclosure: Evidence from Private Firms

This paper explores an unexplored benefit of being privately-held: Non-SEC-filing private firms’ ability to disclose confidential information to selected investors minimizes the scope for information asymmetry between the firms and their investors. This decreases... View Details

September 1996 (Revised September 2004)
Case

Monterrey Manufacturing Company

By: William J. Bruns Jr.

A small manufacturing company plans and budgets sales and expenses to ensure that its strategy is feasible. It must trace costs of manufacturing through work-in-process to finished goods and cost of goods sold, and project cash flows and income. View Details

Keywords: Cost Accounting; Business Earnings; Cash Flow; Sales; Budgets and Budgeting; Manufacturing Industry

February 1998 (Revised March 1998)
Case

Marriott Corporation: The Cost of Capital

By: Richard S. Ruback

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