Case Problems in Finance is a Harvard case course presenting real business situations that pose debatable alternative courses of action. The cases contain problems that can be narrowed but not always settled by the usual techniques of financial analysis. It will teach students to discover ways of thinking that are productive in handling different types of managerial problems intelligently. The cases are grouped by major topics: financial analysis and forecasting, cost of capital, working capital management, capital budgeting, dividend policy, debt policy, financial execution, and mergers and restructuring.
* signifies a new case
Part 1: Financing Current Operations
Introductory Exercises
Financial Ratio Analysis Assessing a Firm’s Future Financial Health
Forecasting Pro Forma Financial Statements Tire City, Inc. *
Estimating Funds Requirements – Short-term Sources of Funds
Funding Growth Butler Lumber Company *Note on Bank Loans
Funding Seasonal Needs Toy World, Inc.
Funding Cyclical Needs SureCut Shears, Inc.
Managing Working Capital Dell’s Working Capital *
Cash Budgeting Hampton Machine Tool
Part II: Capital Structure, Long-Term Financing and Risk Management
Debt Policy and Long-Term Financing
Target Debt Policy E.I. DuPont de Nemours and Company (1983)
Costs of Financial Distress Williams Company *The Loewen Group, Inc. (Abridged) *
Capital Structure Decisions American Home Products Corporation Debt Policy at UST *Diageo plc *
Earnings Impact of Leverage Continental Carriers, Inc.
Pricing Debt Instruments Fixed Income Valuation *
Credit Ratings and Access to Debt Markets Hospital Corporation of America (A)
Equity Financing Stone Container Corporation (A) *
Equity-Linked Securities MCI Communications Corporation (1983)Cox Communications *
Cross-Border Financing Compañia de Teléfonos de Chile
Cash Distribution Dividend Policy at FPL Group, Inc. (A) Recapitalization Ford’s Value Enhancement Plan *
Event Risk Marriott Corporation (A)
Derivative Instruments and Risk Management
Basic Derivative Instruments Introduction to Derivative Instruments
Valuing Derivatives Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged) *
Interest Rate Derivatives Student Educational Loan Fund, Inc. (Abridged) *
Options and Security Design Arley Merchandise Corporation *
Pension Fund Risk Management The Pension Plan at Bethlehem Steel, 2001 *
Risk Identification and Selection of Risk-Management Techniques Tiffany & Company (1993)United Grain Growers Limited (A) *
Part III: Valuation and Investment
Valuing and Selecting Investment Opportunities
Discounted Cash Flow Analysis Valuing Capital Investment Projects *
Introduction to Decision Trees Merck & Company: Evaluating a Drug Licensing Opportunity*
Basic Value Creation Tree Values*
Identifying Incremental Cash Flows The Super Project
Forecasting Expected Cash Flows Netflix.com, Inc. *A-Rod: Signing the Best Player in Baseball *
Capital Budgeting Ocean Carriers *Whirlpool Europe *
Multiples Health Development Corporation *
Cost of Capital and Valuation
Cost of Capital Diversification, the Capital Asset Pricing Model, and the Cost of Equity Capital
Capital Asset Pricing Model and the Cost of Equity Capital Ameritrade Holding Corporation, 1997 *
Risk and the Opportunity Cost of Capital Pioneer Petroleum Corporation
Leveraged Betas Leveraged Betas and the Cost of Equity Capital W
eighted Average Cost of Capital Marriott Corporation: The Cost of Capital (Abridged)Lex Service PLC: Cost of Capital *
Valuation Alternatives Free Cash Flow Valuation Methods: Weighted Average Cost of Capital (WACC) and Adjusted Present Value (APV)
*Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows *
Advanced Valuation
Valuing Projects and Businesses Radio One, inc. *American Chemical Corporation
Valuing Companies Adecco SA’s Acquisition of Olsten Corporation
*Cooper IndustriesInterco
Initial Public Offering Eskimo Pie Corporation (Abridged) *Netscape’s Initial Public Offering
Hostile Takeovers Gulf Oil Corporation – TakeoverPhilip Morris Companies and Kraft, Inc.
Highly Leveraged Transactions John M. Case CompanyCongoleum Corporation (Abridged)RJR Nabisco
Real Options Laura Martin: Real Options and the Cable Industry *Arundel Partners: The Sequel ProjectCapital
Projects as Real Options: An Introduction
Part IV: Review and Synthesis
Integrated Financial Decisions and Comprehensive Review Staged Equity Financing Pharmacyclics: Financing Research and Development *
Business Plan Evaluation Valuing Project Achieve *
Management Buyout Seagate Technology Buyout *
Merger and Acquisition Friendly Cards, Inc.Pinkerton (A)
Vodaphone Airtouch’s Bid for Mannesmann *
Index of Cases