Case Studies in Finance: Managing for Corporate Value Creation

Table of Contents PART 1 SETTING SOME THEMES 1 WARREN E. BUFFETT, 1995 To Think Like an Investor 2 THE FIDELITY MAGELLAN FUND, 1995 Market Efficiency 3 JEANNE MOCKARD, AT PUTNAM INVESTMENTS Opportunity Cost 4 BEN & JERRY'S HOMEMADE, INC. Value Creation and Governance 5 THE BATTLE FOR VALUE: FEDERAL EXPRESS CORPORATION VS. UNITED PARCEL SERVICE OF AMERICA, INC. (ABRIDGED) Value Creation and Economic Profit PART 2 FINANCIAL ANALYSIS AND FORECASTING 6 THE FINANCIAL DETECTIVE, 1996 Ratio Analysis 7 THE BODY SHOP INTERNATIONAL PLC 2001: AN INTRODUCTION TO FINANCIAL MODELING Introduction to Forecasting 8 PADGETT PAPER PRODUCTS COMPANY Analysis of Growth and Bank Financing 9 KOTA FIBRES LTD. Forecasting Seasonal Financing Needs 10 DEUTSCHE BRAUEREI Forecasting and Policies Regarding Growth 11 SERVERVAULT: "REALIABLE, SECURE AND WICKED FAST" "Burn Rate" of the High-growth Firm PART 3 ESTIMATING THE COST OF CAPITAL 12 BEST PRACTICES IN ESTIMATING THE COST OF CAPITAL: SURVEY AND SYNTHESIS Estimating the Cost of Capital 13 NIKE, INC.: COST OF CAPITAL Cost of Capital for the Firm 14 COKE VS. PEPSI, 2001 Cost of Capital and EVA for Competitors 15 TELETECH CORPORATION, 1996 Business Segments and Risk-return Trade-offs 16 PAGINAS AMARELAS Estimating Discount Rates for Emerging Markets PART 4 CAPITAL BUDGETING AND RESOURCE ALLOCATION 17 THE INVESTMENT DETECTIVE Investment Criteria and Discounted Cash Flow 18 FONDERIA DI TORINO S.P.A. Analysis of an Automation Investment 19 DIAMOND CHEMICALS PLC (A): THE MERSEYSIDE PROJECT Relevant Cash Flows 20 DIAMOND CHEMICALS PLC (B): MERSEYSIDE AND ROTTERDAM PROJECTS Mutually Exclusive investment Opportunities 21 GENZYME/GELTEX PHARMACEUTICALS JOINT VENTURE Staged versus Up-front Investing 22 EUROLAND FOODS S.A. Strategic Resource Allocation 23 STAR RIVER ELECTRONICS LTD Capital Project Analysis and Forecasting PART 5 MANAGEMENT OF THE FIRM'S EQUITY: DIVIDENDS, REPURCHASES, INITIAL OFFERINGS 24 EASTBORO MACHINE TOOLS CORPORATION Dividend and Stock Buyback Decisions 25 DONALDSON LUFKIN & JENRETTE 1995 (ABRIDGED) Initial Public Offering for a Mature Firm 26 EBAY INC. (A) Initial Public Offering for a Young Firm 27 PLANET COPIAS & IMAGEM Financing the Early-Stage High-Growth Firm PART 6 MANAGEMENT OF THE CORPORATE CAPITAL STRUCTURE 28 AN INTRODUCTION TO DEBT POLICY AND VALUE Effects of Debt Tax Shields 29 STRUCTURING CORPORATE FINANCIAL POLICY: DIAGNOSIS OF PROBLEMS AND EVALUATION OF STRATEGIES Concepts in Setting Financial Policy 30 MCI COMMUNICATIONS CORP.: CAPITAL STRUCTURE THEORY Leveraged Restructuring 31 POLAROID CORPORATION, 1996 Financial Flexibility 32 ROSARIO ACERO S. A. Choice Between Debt and Equity Financing 33 THRESHOLD SPORTS LLC Capital Acquisition for the Young Firm PART 7 ANALYSIS OF FINANCING TACTICS: LEASES, OPTIONS AND FOREIGN CURRENCY 34 MERTON ELECTRONICS CORPORATION Hedging Foreign Currency Cash Flows 35 NATIONAL RAILROAD PASSENGER CORPORATION ("AMTRAK"): ACELA FINANCING Evaluating a Lease Financing Proposal 36 CORNING INC.: ZERO-COUPON CONVERTIBLE DEBENTURES DUE NOVEMBER 8, 2015 (A) Convertible Bond Valuation and Financing 37 ENRON CORPORATION'S WEATHER DERIVATIVES (A) Financial Innovation for Risk Management PART 8 VALUING HE ENTERPRISE: ACQUISITIONS AND BUYOUTS 38 ROCKY MOUNTAIN ADVANCED GENOME INC. Evaluating Terminal Values 39 YEATS VALVES AND CONTROLS INC. Valuing the Enterprise for Sale 40 CHRYSLER CORPORATION: NEGOTIATIONS BETWEEN DAIMLER AND CHRYSLER Negotiating a Complex Cross-Border Merger 41 PALAMON CAPITAL PARTNERS/TEAMSYSTEM S.P.A. Valuing a Private Equity Investment 42 GENERAL MILLS' ACQUISITION OF PILLSBURY FROM DIAGEO PLC Evaluating a Contingent Value Right 43 PRINTICOMM'S PROPOSED ACQUISITION OF DIGITECH: NEGOTIATING PRICE AND FORM OF PAYMENT Evaluating an Earnout-Proposal 44 STRUCTURING REPSOL'S ACQUISITION OF YPF S.A. (A) Financing a Cross-Border Hostile Tender Offer 45 HOSTILE TAKEOVERS: A PRIMER FOR THE DECISION MAKER Contests for Control 46 THE HILTON-ITT WARS Setting Bidding Strategy for Takeovers