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  • All HBS Web  (8,599)
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  • July 1997
  • Background Note

Basic Capital Investment Analysis

By: William J. Bruns Jr.
Discusses the net present value and internal rate of return methods for analyzing capital investments. Assumes prior knowledge of compound interest and present value methods. View Details
Keywords: Investment Return; Valuation
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Bruns, William J., Jr. "Basic Capital Investment Analysis." Harvard Business School Background Note 198-004, July 1997.
  • October 2022 (Revised January 2025)
  • Case

Founders First Capital Partners: An Approach to Capital Access Equity

By: Brian Trelstad, Mel Martin and Amy Klopfenstein
In June 2021, Kim T. Folsom, the founder and CEO of revenue-based financing firm Founders First Capital Partners (FFCP), must decide whether to issue another loan to OnShore Technology Group, an up-and-coming software validation company. FFCP provided revenue-based... View Details
Keywords: Finance; Financial Instruments; Financing and Loans; Interest Rates; Investment Return; Revenue; Capital; Financial Services Industry; North and Central America; United States
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Trelstad, Brian, Mel Martin, and Amy Klopfenstein. "Founders First Capital Partners: An Approach to Capital Access Equity." Harvard Business School Case 323-013, October 2022. (Revised January 2025.)
  • Research Summary

Globalization of Human Capital

By: Nitin Nohria
One of the most significant dimensions of the current wave of globalization is the globalization of human capital. Whether it is low cost, skilled manufacturing workers in China, software and customer service professionals in India, or highly skilled employees in... View Details
  • October 2018 (Revised October 2019)
  • Case

Arlan Hamilton and Backstage Capital

By: Laura Huang and Sarah Mehta
Frustrated by an inability to convince existing venture capital firms to invest in companies led by women, people of color, and LGBT founders, Arlan Hamilton started her own firm, Backstage Capital, in 2015. Hamilton understood the untapped potential of companies run... View Details
Keywords: Black Leadership; LGBTQ; Women; People Of Color; Entrepreneurship; Mission and Purpose; Venture Capital; Corporate Social Responsibility and Impact; Identity; Personal Characteristics; Prejudice and Bias; Social Issues; Diversity; Gender; Race
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Huang, Laura, and Sarah Mehta. "Arlan Hamilton and Backstage Capital." Harvard Business School Case 419-029, October 2018. (Revised October 2019.)
  • March 1976 (Revised November 1993)
  • Background Note

Diversification, the Capital Asset Pricing Model, and the Cost of Equity Capital

Describes in nonmathematical terms the nature of capital asset pricing model and possible use in estimating a company's cost of equity capital. View Details
Keywords: Diversification; Cost of Capital; Asset Pricing
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Mullins, David W., Jr. "Diversification, the Capital Asset Pricing Model, and the Cost of Equity Capital." Harvard Business School Background Note 276-183, March 1976. (Revised November 1993.)
  • December 1971 (Revised December 1994)
  • Background Note

Capital Structure Decision: Underlying Theory

By: William E. Fruhan Jr.
Demonstrates hypothetically and numerically the share price valuation impact of changes in a firm's capital structure. View Details
Keywords: Capital Structure; Decisions
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Fruhan, William E., Jr. "Capital Structure Decision: Underlying Theory." Harvard Business School Background Note 272-096, December 1971. (Revised December 1994.)
  • February 2002
  • Article

Market Timing and Capital Structure

By: Malcolm Baker and Jeffrey Wurgler
It is well known that firms tend to raise equity when their market values are high relative to book and past market values. We document that the resulting effects on capital structure are very persistent. As a consequence, current capital structure is strongly related... View Details
Keywords: Valuation; Equity; Capital Structure; Theory; Market Timing; Financial Markets
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Baker, Malcolm, and Jeffrey Wurgler. "Market Timing and Capital Structure." Journal of Finance 57, no. 1 (February 2002): 1–32. (Winner of Brattle Prize. First Prize Paper For outstanding papers on corporate finance published in the Journal of Finance presented by Brattle Group, Inc. Reprinted in Recent Developments in Corporate Finance, edited by Jay Ritter. Edward Elgar Publishing: UK, 2005.)
  • October 2000 (Revised April 2001)
  • Case

Cost of Capital at Ameritrade

By: Mark L. Mitchell and Erik Stafford
Ameritrade Holding Corp. is planning large marketing and technology investments to improve the company's competitive position in deep-discount brokerage by taking advantage of emerging economies of scale. In order to evaluate whether the strategy would generate... View Details
Keywords: Developing Countries and Economies; Asset Pricing; Cash Flow; Cost of Capital; Investment; Marketing; Mathematical Methods; Competition; Information Technology; Internet and the Web; Financial Services Industry
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Mitchell, Mark L., and Erik Stafford. "Cost of Capital at Ameritrade." Harvard Business School Case 201-046, October 2000. (Revised April 2001.)
  • February 2025
  • Case

RedBird Capital Partners

By: Anita Elberse and David Moreno Vicente
In July 2024, Gerry Cardinale, the founder and managing partner of RedBird Capital Partners (‘RedBird’) has helped orchestrate a high-profile deal in the world of entertainment: one in which Skydance Media (‘Skydance’), a content production studio led by David Ellison... View Details
Keywords: Film; Television; Superstars; General Management; Investing; Mergers and Acquisitions; Private Equity; Asset Management; Entertainment; Media; Sports; Business or Company Management; Investment; Marketing; Strategy; Financial Services Industry; Sports Industry; Entertainment and Recreation Industry
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Elberse, Anita, and David Moreno Vicente. "RedBird Capital Partners." Harvard Business School Case 525-049, February 2025.
  • 2009
  • Book

The Concept of Capitalism

By: Bruce R. Scott
This monograph on the concept of capitalism is the intellectual core of a larger work, entitled Capitalism, Its Origins and Evolution as a System of Governance, due for publication November 2009. The purpose of this monograph is to put forth an original concept of... View Details
Keywords: Economic Systems; Framework; Governance; History; System; Theory
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Scott, Bruce R. The Concept of Capitalism. Springer, 2009. (Online version available by clicking on title.)
  • April 1999 (Revised November 1999)
  • Case

Columbia Capital Corporation: Summer 1998

By: G. Felda Hardymon and Justin D. Wasik
In August 1998, the partners of Columbia Capital in Arlington, Va. made a decision about whether or not to raise an outside fund for venture capital investing. Columbia had begun in 1988 as a boutique investment bank focused on the telecommunications industry, but had... View Details
Keywords: Decisions; Venture Capital; Private Equity; Partners and Partnerships; Investment Funds; Banks and Banking; Financial Services Industry; Telecommunications Industry; United States
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Hardymon, G. Felda, and Justin D. Wasik. "Columbia Capital Corporation: Summer 1998." Harvard Business School Case 899-255, April 1999. (Revised November 1999.)
  • January 2017
  • Case

Nashua River Capital Management

By: Samuel Hanson and Aldo Sesia
Investment manager Eliza Baena confronts an apparent convertible bond arbitrage opportunity when she notices a narrowing spread between two Boston Properties (BXP) bonds, one a convertible bond and the other a straight bond, in the wake of the 2008 Lehman bankruptcy.... View Details
Keywords: Asset Management; Bonds; Investment
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Hanson, Samuel, and Aldo Sesia. "Nashua River Capital Management." Harvard Business School Case 217-045, January 2017.
  • December 1992 (Revised May 1993)
  • Case

Rochester Capital

By: Andre F. Perold and Kuljot Singh
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Perold, Andre F., and Kuljot Singh. "Rochester Capital." Harvard Business School Case 293-083, December 1992. (Revised May 1993.)
  • October 1993
  • Article

Family Capitalism

By: G. Jones and Mary B. Rose
Keywords: Economic Systems; Family and Family Relationships
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Jones, G., and Mary B. Rose. "Family Capitalism." Business History 35, no. 4 (October 1993): 1–16.
  • November 2003 (Revised March 2004)
  • Case

Dewberry Capital

By: William J. Poorvu
In 2003, key executives of Dewberry Capital, a fast-growing, Atlanta-based real estate company, are evaluating their growth strategy and the resultant organizational issues. John Dewberry, the entrepreneurial founder of the firm, has developed a portfolio of... View Details
Keywords: Buildings and Facilities; Selection and Staffing; Business Growth and Maturation; Entrepreneurship; Growth and Development Strategy; Real Estate Industry; Atlanta
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Poorvu, William J. "Dewberry Capital." Harvard Business School Case 904-418, November 2003. (Revised March 2004.)
  • September 2020
  • Article

The Rise of the Investor State: State Capital in the Chinese Economy

By: Meg Rithmire and Hao Chen
The nature and extent of the role of the Chinese state in the economy is fundamental to many empirical and theoretical debates about that country’s political economy. We document and explain the rise of a novel form of intervention on the part of the Chinese state: the... View Details
Keywords: China's Political Economy; State Shareholding; State-business Relations; State Capitalism; China's Financial System; Economy; Business and Government Relations; Finance; System; China
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Rithmire, Meg, and Hao Chen. "The Rise of the Investor State: State Capital in the Chinese Economy." Studies in Comparative International Development 55, no. 3 (September 2020): 257–277.
  • October 2013
  • Module Note

Note on LBO Capital Structure

By: Victoria Ivashina, Paul A. Gompers, Paul A. Gompers, Victoria Ivashina, Joris Van Gool and Joris Van Gool
This note discusses the capital structure often found in LBO transactions. Although the specifics of each capital structure vary case by case, in any given year, there is a great deal of similarity in the capital structure of these buyouts. These similarities exist... View Details
Keywords: Leveraged Buyouts; Capital Structure
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Gompers, Paul A., Victoria Ivashina, and Joris Van Gool. "Note on LBO Capital Structure." Harvard Business School Module Note 214-039, October 2013.
  • November 1999
  • Case

Long-Term Capital Management, L.P. (A)

By: Andre F. Perold
Long-Term Capital Management, L.P. (LTCM) was in the business of engaging in trading strategies to exploit market pricing discrepancies. Because the firm employed strategies designed to make money over long horizons--from six months to two years or more--it adopted a... View Details
Keywords: Fluctuation; Capital; Financial Liquidity; Financing and Loans; Investment Funds; Investment Portfolio; Corporate Governance; Governing Rules, Regulations, and Reforms; Management; Risk Management; Marketing; Motivation and Incentives; Financial Services Industry
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Perold, Andre F. "Long-Term Capital Management, L.P. (A)." Harvard Business School Case 200-007, November 1999.
  • January 1994 (Revised November 1997)
  • Case

Aberlyn Capital Management: July 1993

By: Josh Lerner and Peter Tufano
Aberlyn Capital Management, a venture leasing firm specializing in providing capital to biotechnology firms, proposes to introduce a new product. Aberlyn will base a lease on an intangible product: the patent of a biotechnology firm. This poses a series of short and... View Details
Keywords: Financing and Loans; Valuation; Product Launch; Problems and Challenges; Patents; Financial Instruments; Financial Services Industry; Biotechnology Industry
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Lerner, Josh, and Peter Tufano. "Aberlyn Capital Management: July 1993." Harvard Business School Case 294-083, January 1994. (Revised November 1997.)
  • August 2000 (Revised July 2002)
  • Background Note

Fundamental Enterprise Valuation: Invested Capital

By: Carliss Y. Baldwin
A technical note that defines invested capital (IC). View Details
Keywords: Business Ventures; Valuation; Capital
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Baldwin, Carliss Y. "Fundamental Enterprise Valuation: Invested Capital." Harvard Business School Background Note 801-122, August 2000. (Revised July 2002.)
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