Publications

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March 2001 (Revised November 2001)
Case

Merrill Lynch HOLDRS

By: Andre F. Perold and Simon E. Brown

Exchange-traded funds (ETFs) and HOLDRS (Holding Company Depositary Receipts) represent recent and highly successful capital market innovations. HOLDRS closely approximates a buy-and-hold strategy, and Merrill Lynch believes the product has significantly lower taxes... View Details

Keywords: Capital Markets; Cost; Stocks; Financial Strategy; Investment Funds; Taxation; Innovation and Invention; Product; Success; Expansion

January 2001 (Revised June 2001)
Case

Local Initiatives Support Corporation

By: James E. Austin and Kim Slack

Local Initiatives Support Corp. (LISC) is a $74 million nonprofit social enterprise that combats poverty by helping community development organizations build affordable housing and create economic development opportunities through public-private partnerships. Poses a... View Details

Keywords: Business Model; Development Economics; Education; Capital; Investment Funds; Taxation; Growth and Development; Partners and Partnerships; Nonprofit Organizations; Segmentation; Service Industry

July 2000 (Revised November 2001)
Case

Catalyst Medical Solutions

By: Amy C. Edmondson, Richard M.J. Bohmer and Naomi Atkins

Faced with a drop in the NASDAQ, four eHealth entrepreneurs must decide between two distribution strategies for their new company's technology. The team, comprised of three full-time resident physicians and an MBA, has developed software to enable electronic... View Details

Keywords: Product Development; Health Care and Treatment; Distribution; Strategy; Venture Capital; Applications and Software; Partners and Partnerships; Borrowing and Debt; Information Technology Industry; Service Industry

March 1997
Article

Transactions Costs and Capital Structure Choice: Evidence from Financially Distressed Firms

By: S. C. Gilson

This study provides evidence that transactions costs discourage debt reductions by financially distressed firms when they restructure their debt out of court. As a result, these firms remain highly leveraged and one-in-three subsequently experience financial distress.... View Details

Keywords: Cost; Capital Structure; Decision Choices and Conditions; Information; Finance; Business Ventures

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February 1997
Case

Transportation Displays, Incorporated (D): Exiting from a Successful Restructuring

By: Stuart C. Gilson, Vincent Hemmer, Eric Rahe, David Shorrock and Stephen Voorhis

Following a successful corporate turnaround and, more recently, a leveraged recapitalization, management of a highly profitable, fast--growing outdoor advertising company must consider alternative ways to harvest cash flow from the company without jeopardizing the... View Details

Keywords: Restructuring; Capital; Cash Flow; Profit; Taxation; Private Ownership

March 1996 (Revised July 1996)
Case

Service Corporation International

By: Benjamin C. Esty and Craig F Schreiber

The CFO of a high-growth company in the low-growth and fragmented funeral services industry must decide how to optimize capital structure and earnings growth while maximizing the company's market value. View Details

Keywords: Financial Management; Value Creation; Business Growth and Maturation; Consolidation; Industry Growth; Capital Structure; Expansion; Service Industry; United States; North and Central America

Article

Optimal Investment, Monitoring, and the Staging of Venture Capital

By: Paul A. Gompers

Keywords: Investment; Venture Capital

1995
Chapter

Interest Allocation Rules, Financing Patterns, and the Operations of US Multinationals

By: Kenneth A. Froot and James R. Hines Jr.

Keywords: Corporation Taxation; Interest Deductibility; Cost of Capital; Taxation; Financing and Loans; Corporate Finance

1995
Chapter

The Tax Treatment of Interest and the Operations of U.S. Multinationals

By: Kenneth A. Froot

Keywords: Corporation Taxation; Interest Deductibility; Cost of Capital; Taxation; Financing and Loans; Corporate Finance

1995
Chapter

Securities Transaction Taxes: What about International Experiences Migrating Markets?

By: John Y. Campbell and Kenneth A. Froot

Keywords: Corporation Taxation; Interest Deductibility; Cost of Capital; Taxation; Financing and Loans; Interest Rates; Corporate Finance

1994
Chapter

International Experiences with Securities Transaction Taxes

By: K. A. Froot and J. Campbell

Keywords: Corporation Taxation; Interest Deductibility; Cost Of Capital; Corporate Finance; Accounting; Borrowing and Debt; Financing and Loans; Interest Rates

1994
Other Unpublished Work

Interest Allocation Rules and the Changing Cost of Debt Finance

By: K. A. Froot and J. Hines

Keywords: Corporation Taxation; Interest Deductibility; Cost of Capital; Taxation; Interest Rates; Borrowing and Debt; Corporate Finance

1994
Other Unpublished Work

Losing Interest: Interest Allocation Rules and the Cost of Debt Finance

By: K. A. Froot and J. Hines

Keywords: Accounting; Corporation Taxation; Interest Deductibility; Cost Of Capital; Corporate Finance; Borrowing and Debt; Financing and Loans; Interest Rates

November 1993 (Revised April 2007)
Case

Continental Airlines--1992 (Abridged)

By: Stuart C. Gilson

The CEO is preparing a recommendation to the board regarding several potential outside investments in the company, which is currently operating in bankruptcy. In making his decision, the CEO has to consider various financial and strategic factors, including possible... View Details

Keywords: Capital Structure; Cash Flow; Cost of Capital; Insolvency and Bankruptcy; Investment; Taxation; Risk and Uncertainty; Valuation; Aerospace Industry; United States

January 1992
Teaching Note

Note on the Theory of Optimal Capital Structure TN

By: William E. Fruhan Jr.

Teaching Note for (9-279-069). View Details