शोध परिणाम

Corporate Valuation and Market Multiples
Provides a basic introduction to the use of market multiples for business valuation. Explains the method's reliance on the Law of One Price, sets forth the basic steps for using the method, and reviews some practical issues arising in its application.... अधिक
Language: ENGकॉपीराईट: 2005 
Stryker Corp.: Insourcing PCBs
Examines a proposed investment in the capability to manufacture printed circuit boards (PCBs) inhouse rather than buying them from thirdparty contract manufacturers. Stryker Corporation's Instruments business is considering the proposal in response to difficulties with existing suppliers. Requires... अधिक
Language: ENGकॉपीराईट: 2007 
Real Options Exercises
Introduces students to simple forms and solution techniques for real options found in corporate settings. Revised versions of problems appearing in an older problem set (293095). The basic differences are that the new set is shorter, but also a bit more demanding.... अधिक
Language: ENGकॉपीराईट: 2007 
Stryker Corporation: Capital Budgeting
Examines some parts of Stryker Corporation's systems and procedures for approving and authorizing capital spending of many different types, including buildings, machinery, and working capital for existing businesses, as well as transactions with third parties such as acquisitions, joint ventures, an... अधिक
Language: ENGकॉपीराईट: 2007 
Business Valuation and the Cost of Capital
This note is an introduction to the cost of capital as used in discounted cash flow valuation analyses. The note covers basic financial economic principles and practical problems encountered in calculating the cost of capital, especially WACC. It concludes with cautionary advice about computing and ... अधिक
Language: ENGकॉपीराईट: 2009 
Note on Operating Exposure to ExchangeRate Changes
Describes the effects on operating cash flows of a real change in exchange rates. Describes different elements of operating exposure and includes illustrative examples.... अधिक
Language: ENGकॉपीराईट: 1987 
Goodyear Tire & Rubber Co.1988
Set two years after a takeover attempt forced the company to restructure by leveraging up, selling assets, and repurchasing stock. The case affords an opportunity to analyze what effect the restructuring had on: 1) the cost of capital, 2) investment decisions, and 3) the competitive behavior of othe... अधिक
Language: ENGकॉपीराईट: 1989 
Note on Adjusted Present Value
Describes the "adjusted present value" (APV) approach to discounted cash flow analysis. Much of the note is devoted to a critical comparison of APV and an approach based on the wrighted average cost of capital (WACC). Argues that APV is usually, if not always, simpler, more accurate, and/or more inf... अधिक
Language: ENGकॉपीराईट: 1993 
Corporate Financial Management: Options Exercises
This case presents four exercises designed to introduce students to applications of option pricing and decisiontree analysis to real corporate investment problems. Two of the four problems involve decision trees and two involve option pricing. Students should be familiar with basic option pricing t... अधिक
Language: ENGकॉपीराईट: 1993 
Goodyear Tire & Rubber Co.1986
Goodyear's transition to radial tires from bias and biasbelted tires was difficult and expensive, but successful. Afterward, in 1983, the company embarked on a major diversification program. Three years later, after investments exceeding $1 billion in oil and gas pipelines and reserves, Goodyear wa... अधिक
Language: ENGकॉपीराईट: 1994 
Capital Projects as Real Options: An Introduction
Introduces a framework for evaluating corporate investment projects as call options. Presumes readers are familiar with basic option pricing and basic capital budgeting rules. Explains the motivation for viewing projects as options; presents a mapping between a capital project and an option; shows h... अधिक
Language: ENGकॉपीराईट: 1994 
Note on Valuing Equity Cash Flows
A technical note for advanced students on the topic of valuing highlylevered equity. Introduces the "equity cash flow" valuation methodology, shows how to use it, discusses the sources and signs of its builtin biases, and provides some guidance about when to use it.... अधिक
Language: ENGकॉपीराईट: 1994 
Finance Reading: Capital Structure Theory
This reading introduces students to the theory of capital structure. It explores the determinants of an optimal capital structurefirst in the context of Modigliani and Miller's (M&M's) perfect market conditions, and then as M&M conditions are selectively relaxed. The reading begins with an overvi... अधिक
Language: ENGकॉपीराईट: 2016 
Finance Reading: Time Value of Money
Given an interest rate, students will learn to calculate the present value of a sum to be received in the future or, alternatively, the future value of a sum invested today. The reading covers compounding and discounting, the two types of calculations used to determine the future and present value o... अधिक
Language: ENGकॉपीराईट: 2015 
What's It Worth?: A General Manager's Guide to Valuation
Behind every major resourceallocation decision a company makes lies some calculation of what that move is worth. So it is not surprising that valuation is the financial analytical skill general managers want to learn more than any other. What do generalists need in an updated valuation tool kit? In... अधिक
Language: ENGकॉपीराईट: 1997 
Using APV: A Better Tool for Valuing Operations
For the past 25 years, managers have been taught that the best practice for valuing assetsthat is, an existing business, factory, product line, or market positionis to use a discountedcashflow (DCF) methodology. That is still true. But the particular version of DCF that has been accepted as th... अधिक
Language: ENGकॉपीराईट: 1997 
Investment Opportunities as Real Options: Getting Started on the Numbers
In this article, Timothy A. Luehrman presents a framework that can bridge the gap between the practicalities of realworld capital projects and the higher mathematics associated with formal optionpricing theory. His stepbystep approach maps out the exact relationship between a project's character... अधिक
Language: ENGकॉपीराईट: 1998 
Strategy as a Portfolio of Real Options
In this article, Timothy A. Luehrman explores how option pricing can be used to improve decision making about the sequence and timing of a portfolio of strategic investments. In financial terms, a business strategy is much more like a series of options than like a single projected cash flow. Executi... अधिक
Language: ENGकॉपीराईट: 1998 
Finance Reading: NPV and Capital Budgeting
This reading introduces students to the capital allocation process. It presents the valuation tools and financial metrics used by companies to evaluate investment opportunities. The reading begins with the relatively simple problem of evaluating a single investment proposal using net present value (... अधिक
Language: ENGकॉपीराईट: 2016 
Finance Reading: Stock Returns and Diversification
This is the first in a set of two Readings on risk and return. It introduces the ideas of financial risk and return, at first intuitively, with a discussion of investor risk aversion and tradeoffs, and then formally, with a basic explanation of pertinent statistics. It introduces probability distrib... अधिक
Language: ENGकॉपीराईट: 2017 
Finance Reading: Cost of Capital
This Reading introduces students to practical problems they will encounter when estimating and applying the cost of capital in a DCF valuation. It applies, but does not derive, key ideas from modern portfolio theory and is accessible to students who have not yet studied portfolio theory. The reading... अधिक
Language: ENGकॉपीराईट: 2017 
Finance Reading: Portfolio Theory
This is the second in a set of two Readings on Modern Portfolio Theory. It presumes students have already read "Risk and Return 1: Stock Returns and Diversification" (#5220). This Reading starts by examining the effect of diversification on portfolio volatility, graphically and mathematically, for d... अधिक
Language: ENGकॉपीराईट: 2017 
Finance Reading: Introduction to Bonds and Bond Math
This reading covers the basic elements of bonds and introduces some of the analytical techniques used to understand and compare them. It assumes the reader is familiar with the concept of the time value of money (see HBP 8299). The reading provides an economic analysis of simple riskfree bonds, inc... अधिक
Language: ENGकॉपीराईट: 2016 
Note on Adjusted Present Value
Describes the "adjusted present value" (APV) approach to discounted cash flow analysis. Much of the note is devoted to a critical comparison of APV and an approach based on the wrighted average cost of capital (WACC). Argues that APV is usually, if not always, simpler, more accurate, and/or more inf... अधिक
Language: ENGकॉपीराईट: 1993 
Progressive Corporation: Variable Dividends
In 2006, Progressive Corporation announced a change in its dividend policy. Henceforth, dividends would be paid annually rather than quarterly and, more important, would be set according to a formula that would result in considerably greater yeartoyear variability than was the case historically. U... अधिक
Language: ENGकॉपीराईट: 2008