Publications

June 1988 (Revised December 1991)
Case

An Tai Bao Coal Mining Project

By: W. Carl Kester and Richard P. Melnick

An Tai Bao is the world's largest open-pit coal mine and is located in China's Shanxi province. After eight years of planning and negotiating, Occidental Petroleum, the foreign partner in the deal, is about to sign an ownership and financing agreement for $475 million... View Details

Keywords: Planning; Agreements and Arrangements; Non-Renewable Energy; Equity; Partners and Partnerships; Negotiation Deal; Joint Ventures; Mining Industry; China

October 1987 (Revised November 1991)
Case

Fiat--1986

By: W. Carl Kester and Richard P. Melnick

Describes Fiat's 1986 Euro-equity offering of $2.1 billion of stock. The offering proved to be highly problematic, particularly for the lead manager, Deutsche Bank, and raises questions about the future of the Euro-equity market. Students are provided opportunities to... View Details

Keywords: Equity; Stocks; Negotiation Deal; Outcome or Result; Opportunities; Auto Industry

October 1986 (Revised February 2008)
Case

Congoleum Corp. (Abridged)

By: William E. Fruhan Jr.

Describes the development and terms of the largest leveraged buyout up to the date of the case. The main problem is to value the positions of the various participants: lenders, equity holders, investment bankers, and management. This is an abridged version of an... View Details

Keywords: Leveraged Buyouts; Mergers and Acquisitions; Financial Management; Negotiation Participants; Valuation

September 1986 (Revised July 2001)
Case

Eastern Electric Apparatus Repair Company (A)

By: Carliss Y. Baldwin and Harry Gruner

As principals engaged in structuring leveraged buyouts for a well-capitalized risk arbitrage firm, Bob Meehan and George Schwartz are preparing to bid for the business and assets of a Westinghouse subsidiary. The case focuses on the value of the opportunity, methods of... View Details

Keywords: Leveraged Buyouts; Bids and Bidding; Opportunities; Business Subsidiaries; Strategy; Valuation; Equity; Electronics Industry

December 1985
Article

An Empirical Analysis of the Interfirm Equity Investment Process

By: W. Mikkelson and R. S. Ruback

Keywords: Theory; Equity; Investment

June 1984 (Revised July 1999)
Background Note

Securities Law and Private Financing

By: Howard H. Stevenson and Michael J. Roberts

Describes the issues an entrepreneur faces in the process of raising private funds, and the securities laws which impact the process. Based in part on a note by R.E. Floor of the law firm of Goodwin, Procter & Hoar. View Details

Keywords: Entrepreneurship; Laws and Statutes; Private Equity; Financing and Loans

January 1983 (Revised February 1988)
Case

Hospital Corp. of America (B)

By: W. Carl Kester

Focuses on HCAs financing options for reaching its target capital structure. The options include new equity conversion of convertible debentures, a debt-for-equity swap, the sale of assets, and fixed-rate debt. Students must address the problem of market timing and... View Details

Keywords: Assets; Capital Structure; Cash Flow; Equity; Debt Securities; Credit Derivatives and Swaps; Health Industry; United States

October 1982 (Revised September 1988)
Case

Steven B. Belkin

By: Howard H. Stevenson and Richard O. von Werssowetz

Steven Belkin, 26 years old and 2 1/2 years out of HBS, has decided to leave a group travel company he has run for the last year to start his own similar business. In the course of several months he has written a business plan, attracted several partners and employees,... View Details

Keywords: Business Plan; Business Startups; Decisions; Equity; Investment; Personal Finance; Recruitment; Resignation and Termination; Failure; Partners and Partnerships

March 1982
Article

The Effect of Discretionary Price Control Decisions on Equity Values

By: R. S. Ruback

Keywords: Price; Decision Making; Value; Finance

February 1979
Case

Systems Engineering Laboratories, Inc.

By: William E. Fruhan Jr.

Choosing an equity offering or an offering of straight subordinated debt with a CCC credit rating and a 12.5% coupon. View Details

Keywords: Decision Choices and Conditions; Borrowing and Debt; Corporate Finance; Computer Industry

Article

Inflation and Taxes in a Growing Economy with Debt and Equity

By: M. Feldstein, Jerry R. Green and Eytan Sheshinski

Our tax system was designed for an economy with little or no inflation. The current paper shows that inflation causes capricious changes in the effective rate of tax on capital income and therefore in the real net rate of return that savers receive. This is not only a... View Details

Keywords: Taxation; Inflation and Deflation; Economy

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April 1975 (Revised November 1984)
Case

Enzone Petroleum Corp.

By: Thomas R. Piper

A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: 1) determination of the cost of equity; 2) the usefulness of multiple hurdle rates to adjust for project... View Details

Keywords: Risk and Uncertainty; Cost; Investment Return; Equity; Capital Budgeting; Energy Industry