Synopses & Reviews
The primary course for this book is the case course in Finance taught to all finance majors at boththe MBA and undergraduate level. This is typically a capstone course at the undergraduate leveland either the first or second course at the MBA level. Case Problems in Finance is a Harvard case course that presents 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. 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.
Synopsis
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.
Table of Contents
PART I. FINANCING CURRENT OPERATIONSIntroductoryAssessing a Company's Future Financial HealthEstimating Funds Requirements: Short-Term Courses of FinanceSecular GrowthSeasonal NeedsCyclical NeedsCash BudgetingFinancial ForecastingBank FinancingPART II. LONG-TERM FINANCING AND LIABILITY MANAGEMENTDebt PolicyEarnings Impact of LeverageTarget Debt PolicyCosts of Financial DistressImpact of Leverage on Distributable FundsDebt Policy in a Dynamic ContextFlexibility and SequencingCapital Market Efficiency and Security PricingValuing Cash FlowsWeak and Semi-Strong EfficiencyInsider Trading and Strong-Form EfficiencyInformation Asymmetrics and MispricingsCash Distributions and Market Signaling DividendDesigning Securities to Match Investor Needs: Private vs. Public DebtDerivative Instruments and Risk ManagementBasic Derivative InstrumentsInsuring with OptionsCommodity Price Risk: Diversification vs InsuranceCurrency Risk: Insurance vs HedgingInterest Rate Risk: Hedging with SwapsFinancial ExecutionEquity-Linked SecuritiesSourcing Funds Globally: DebtSourcing Funds Globally: ADRsPART III. VALUATION AND INVESTMENTInvestment DecisionsDiscounted Cash Flow TechniquesIdentifying Incremental Cash FlowsValuing ProjectsCross-Border ValuationReal OptionsCost of CapitalRisk and the Opportunity Cost of CapitalCost of Capital TheoryUse of the WACC in a Multi-Divisional ContextMergers, Acquisitions, Restructurings, and Corporate GovernanceValuing Projects and BusinessesValuing CompaniesInitial Public OfferingsHostile TakeoversChanging Strategies by AcquisitionHighly Leveraged TransactionsDebt Restructuring and Event RiskValue-bases ManagementPART IV. REVIEW AND SYNTHESISComprehensive OverviewAppendixTax TableNote on Investment Tax CreditPresent Value Tables