W. Carl Kester

George Fisher Baker Jr. Professor of Business Administration

W. Carl Kester is the George Fisher Baker Jr. Professor of Business Administration at Harvard Business School. A member of the faculty since 1981, he has served as Deputy Dean for Academic Affairs (2006-2010), Chairman of the Finance Unit (2005-2006), and Senior Associate Dean and Chairman of the MBA Program (1999 to 2005). He teaches corporate finance in both the School’s MBA and Executive Education programs.

Under Professor Kester's leadership of HBS's academic programs, a new course on leadership, corporate accountability, and business ethics, and another on entrepreneurial management, were introduced into the MBA Program’s first-year required curriculum; the required finance curriculum was redesigned; and the elective curriculum in the Program’s second year was rebalanced and expanded to improve course development opportunities for faculty and course selection options for students. The MD/MBA, MBA/MPP and MBA/MPA-ID joint degree programs between HBS and Harvard Medical School and Harvard’s Kennedy School of Government, respectively, were also created and launched under his supervision.

In addition to his work at HBS, Professor Kester has chaired the Harvard University Advisory Committee on Shareholder Responsibility, and served on the Harvard University Health Plans Subcommittee, the Harvard University Committee on Calendar Reform, and the Harvard University Employees Credit Union Board of Directors. He is currently a member of the Committee to Visit Harvard Medical School and School of Dental Medicine, which reports to the University's Board of Overseers.  Professor Kester is a member of the advisory boards for the IESE Business School of the University of Navarra located in Barcelona, Spain; the IPADE Business School in Mexico City, Mexico; and the international advisory committee for a consortium of business schools in the Andean region: INALDE (Colombia); IDE (Ecuador); and PAD (Peru).

Professor Kester’s research and course development focuses on international corporate finance and corporate governance. He is the author or co-author of numerous case studies and articles on these topics. His book, Japanese Takeovers: The Global Contest for Corporate Control, which is a comprehensive field study exploring the Japanese M&A wave of the 1980s and 1990s, was the winner of the O’Melveny & Myers Centennial Grant award. Since 1992, Professor Kester has been a co-editor of the leading volume of finance cases used worldwide, Case Problems in Finance (Irwin/McGraw-Hill), now in its twelfth edition, and Case Problems in International Finance (Irwin/McGraw-Hill). His research has been presented to academic and corporate executive audiences throughout North America, Asia, Europe, and Latin America. Among these are the Council on Foreign Relations, the Financial Executives Institute, the Royal Institute of International Affairs, the Shanghai Stock Exchange, The Strategic Planning Society, the U.S. Securities and Exchange Commission, the U.S. Senate Judiciary Committee, and the World Economic Forum. 

Professor Kester’s consulting activities have involved him with a wide variety of organizations on finance-related topics such as corporate valuation, capital budgeting, real option valuation, and mergers and acquisitions. He has worked with many corporations including J.P. Morgan, IBM, G.E. Capital, Merck & Co., the National Football League, the Standard Chartered Bank, the World Bank, and Xerox Corporation, among others. He is an independent trustee of the BlackRock Closed-End Mutual Funds Complex which consists of approximately 90 funds with combined assets under management in excess of $40 billion. From 2005 to 2008, he was also an independent trustee of Access Capital Strategies Community Investment Fund, Inc., a closed-end mutual fund that enables financial institutions to invest in loans made in low-income areas in such a way as to qualify for Community Reinvestment Act credits. Professor Kester served as a trustee (1988-2002), and as President of the Board of Trustees (1999-2002), of the Nashoba Brooks School, an independent school for boys and girls (pre-school through grade 3) and girls (grades 4 through 8). As Board President, Professor Kester was responsible for developing the School’s long-range plan, and overseeing the School’s first capital campaign and a major expansion of its facilities. He currently serves as a Trustee for Bentley University and as a member of the Board of Governors of the Handel and Haydn Society, a Boston-based musical society featuring an internationally recognized chorus and period instrument orchestra playing historically informed baroque and classical music.

An economics graduate of Amherst College (summa cum laude, Phi Beta Kappa), Professor Kester also holds advanced degrees from Harvard Business School (MBA, Class of 1977), and the London School of Economics and Political Science (M.Sc.). He received his Ph.D. in Business Economics from Harvard University’s Graduate School of Arts and Sciences, where his doctoral thesis, Growth Options and Investment: A Dynamic Perspective on the Firm’s Allocation of Resources, was the winner of the Advanced Management Program Thesis Fellowship prize. Professor Kester is a member of the Council on Foreign Relations, the American Finance Association, and the Financial Management Association.

Professor Kester resides in Concord, Massachusetts with his wife, Jane.  They have three adult children: Kelsey, Eric and Kirsten.

Books

  1. Teaching Manual to accompany Case Problems in Finance

    Keywords: Problems and Challenges; Finance; Teaching; Books;

    Citation:

    Kester, W. Carl, Richard Ruback, and Peter Tufano, eds. Teaching Manual to accompany Case Problems in Finance. 12th ed. Chicago: McGraw-Hill, 2005. View Details
  2. Case Problems in Finance

    Keywords: Problems and Challenges; Finance;

    Citation:

    Kester, W. Carl, Richard Ruback, and Peter Tufano, eds. Case Problems in Finance. 12th ed. Chicago: McGraw-Hill, 2004. View Details
  3. Case Problems in Finance

    Keywords: Finance;

    Citation:

    Kester, W. C., W. E. Fruhan Jr., T. R. Piper, and R. S. Ruback, eds. Case Problems in Finance. 11th ed. Irwin, 1997. View Details
  4. Instructor's Manual to Accompany Case Problems in Finance

    Citation:

    Kester, W. C., W. E. Fruhan, Jr., T. R. Piper, and R. S. Ruback. Instructor's Manual to Accompany Case Problems in Finance. 11th ed. Irwin, 1997. View Details
  5. Case Problems in International Finance

    Keywords: International Finance;

    Citation:

    Kester, W. C., and T. A. Luehrman, eds. Case Problems in International Finance. New York: McGraw-Hill, 1993. View Details
  6. Case Problems in International Finance: Instructor's Manual

    Keywords: International Finance;

    Citation:

    Kester, W. C., and T. A. Luehrman. Case Problems in International Finance: Instructor's Manual. New York: McGraw-Hill, 1993. View Details
  7. Case Problems in Finance

    Keywords: Finance;

    Citation:

    Fruhan, W. E., Jr., W. C. Kester, S. P. Mason, T. R. Piper, and R. S. Ruback, eds. Case Problems in Finance. 10th ed. Irwin, 1992. View Details
  8. Teacher's Manual for Case Problems in Finance

    Keywords: Finance; Cases;

    Citation:

    Fruhan, W. E., Jr., W. C. Kester, S. P. Mason, T. R. Piper, and R. S. Ruback, eds. Teacher's Manual for Case Problems in Finance. 10th ed. Homewood, IL: Irwin, 1992. View Details
  9. Japanese Takeovers: The Global Contest for Corporate Control

    Keywords: Integration; Globalism History; Japan;

    Citation:

    Kester, W. C. Japanese Takeovers: The Global Contest for Corporate Control. Boston: Harvard Business School Press, 1991. View Details

Colloquia and Symposia

  1. Working Group on Cross-Sectoral Leadership

    Citation:

    Kester, W. Carl. "Working Group on Cross-Sectoral Leadership." The White House Office of Presidential Personnel, and Office of Social Innovation and Civic Participation, Washington, D.C., June 11, 2012. (Invited member.) View Details
  2. Working Group on Cross-Sectoral Leadership

    Citation:

    Kester, W. Carl. "Working Group on Cross-Sectoral Leadership." The White House Office of Presidential Personnel, and Office of Social Innovation and Civic Participation, Washington, D.C., March 23, 2012. (Invited member.) View Details
  3. Working Group on Cross-Sectoral Leadership

    Citation:

    Kester, W. Carl. "Working Group on Cross-Sectoral Leadership." The White House Office of Presidential Personnel, and Office of Social Innovation and Civic Participation, Washington, D.C., October 27, 2011. (Invited member.) View Details
  4. Does Japanese Capital Threaten America?

    Citation:

    Kester, W. Carl. "Does Japanese Capital Threaten America?" Cambridge Forum, Cambridge, MA, March 14, 1990. (Guest speaker.) View Details
  5. The New Activist Investors: Private Equity, Hedge Funds and Takeovers

    Keywords: Mergers and Acquisitions; Change;

    Citation:

    Kester, W. Carl. "The New Activist Investors: Private Equity, Hedge Funds and Takeovers." Nomura School of Advanced Management, Tokyo, Japan, July 20, 2007. (Reunion speaker.) View Details
  6. Lessons from the Financial Crisis

    Keywords: Financial Crisis;

    Citation:

    Kester, W. Carl. "Lessons from the Financial Crisis." Lecture at the Nomura School of Advanced Management Reunion, Tokyo, Japan, July 24, 2009. (Reunion speaker.) View Details
  7. A Japanese M&A Wave?

    Keywords: Japan;

    Citation:

    Kester, W. Carl. "A Japanese M&A Wave?" Lecture at the Symposium on Management and Innovation to Create Corporate Value, Keizai Koho Center, Tokyo, Japan, July 14, 2006. (Invited Speaker.) View Details
  8. Mergers and Acquisitions: Constructive or Destructive Force of Change?

    Keywords: Mergers and Acquisitions; Change;

    Citation:

    Kester, W. Carl. "Mergers and Acquisitions: Constructive or Destructive Force of Change?" Nomura School of Advanced Management, Tokyo, Japan, July 22, 2005. (Reunion speaker.) View Details
  9. International Financial Management Course

    Keywords: International Finance; Management;

    Citation:

    Kester, W. Carl. "International Financial Management Course." Lecture at the HBS Course Development Research Seminar, Harvard Business School, November 5, 2004. (Discussant.) View Details
  10. Professional Roles, Responsibilities and Values

    Keywords: Values and Beliefs;

    Citation:

    Kester, W. Carl. "Professional Roles, Responsibilities and Values." Lecture at the Harvard Business School Colloquium on Professional Education, October 1, 2004. (Panelist.) View Details
  11. Faculty Development

    Keywords: Values and Beliefs;

    Citation:

    Kester, W. Carl. "Faculty Development." Lecture at the Harvard Business School Colloquium on Professional Education, May 14, 2004. (Panelist.) View Details
  12. The Impact of Sarbanes-Oxley and the NYSE Rules on American Corporate Governance

    Keywords: Stocks; Corporate Governance; Accounting Audits; United States;

    Citation:

    Kester, W. Carl. "The Impact of Sarbanes-Oxley and the NYSE Rules on American Corporate Governance." Nomura School of Advanced Management, Tokyo, Japan, July 25, 2003. (Reunion speaker.) View Details
  13. The Impact of Enron on Business Education

    Keywords: Business Ventures; Business Education;

    Citation:

    Kester, W. Carl. "The Impact of Enron on Business Education." Nomura School of Advanced Management, Tokyo, Japan, August 2, 2002. (Reunion speaker.) View Details
  14. Governance, Globalizations, and the Forces of Change

    Keywords: Governance; Change; Globalization;

    Citation:

    Kester, W. Carl. "Governance, Globalizations, and the Forces of Change." Lecture at the International Conference on Corporate Governance of Chinese Listed Companies, Shanghai Finance College, Shanghai, China, November 2–3, 2000. (Jointly sponsored by the Shanghai Stock Exchange. Invited keynote speaker.) View Details
  15. Lessons from the Recent U.S. Bubble

    Keywords: Economics; Learning; United States;

    Citation:

    Kester, W. Carl. "Lessons from the Recent U.S. Bubble." Nomura School of Advanced Management, Tokyo, Japan, August 3, 2001. (Reunion speaker.) View Details
  16. Regional Patterns of Corporate Governance: Conflict or Convergence in the 21st Century

    Keywords: Corporate Governance; Conflict and Resolution;

    Citation:

    Kester, W. Carl. "Regional Patterns of Corporate Governance: Conflict or Convergence in the 21st Century." Lecture at the Conference on Corporate Competitiveness and Corporate Governance, Chung-Ang University, Management Research Institute, Seoul, Korea, November 29, 1994. (Invited keynote speaker.) View Details
  17. Japanese and American Corporate Governance: Converging to Best Practice?

    Keywords: Corporate Governance; Management Practices and Processes;

    Citation:

    Kester, W. Carl. "Japanese and American Corporate Governance: Converging to Best Practice?" Lecture at the Amherst College Family Weekend, Amherst College, Department of Economics, Amherst, MA, October 28, 1994. (Guest speaker.) View Details
  18. Use of Convertible and Warrant Bonds by Japanese Firms: Risk Shifting or Delayed Equity?

    Keywords: Bonds; Risk and Uncertainty; Equity; Japan;

    Citation:

    Kester, W. Carl. "Use of Convertible and Warrant Bonds by Japanese Firms: Risk Shifting or Delayed Equity?" In Complex Securities and Corporate Finance. Lecture at the Financial Management Association Annual Meeting, St. Louis, MO, October 13, 1994. (Discussant.) View Details
  19. Canada's Cost of Capital Disadvantage?: Comparative Perspectives

    Keywords: Capital; Canada;

    Citation:

    Kester, W. Carl. "Canada's Cost of Capital Disadvantage?: Comparative Perspectives." Industry Canada, Department of Industry, Science and Technology, Ottawa, Canada, March 25, 1994. (Speaker.) View Details
  20. Multinational Governance in Global Companies: The Conflict Between Companies that Have Become Global and Boards that are Still National

    Keywords: Corporate Governance; Global Range; Local Range; Conflict and Resolution;

    Citation:

    Kester, W. Carl. "Multinational Governance in Global Companies: The Conflict Between Companies that Have Become Global and Boards that are Still National." Lecture at the World Economic Forum Annual Meeting, Davos, Switzerland, January 29, 1994. (Moderator for the panel discussion.) View Details
  21. American, European and Japanese Corporate Governance: Will the World Converge on Best Practice

    Keywords: Corporate Governance; Practice; United States; Japan; Europe;

    Citation:

    Kester, W. Carl. "American, European and Japanese Corporate Governance: Will the World Converge on Best Practice." Lecture at the World Economic Forum Annual Meeting, Davos, Switzerland, January 28, 1994. (Presenter and discussion leader for the session.) View Details
  22. Evolution of the Main Bank System in Japan

    Keywords: Banks and Banking; Banking Industry; Japan;

    Citation:

    Kester, W. Carl. "Evolution of the Main Bank System in Japan." Lecture at the European Science Foundation Workshop on Corporate Finance, Center for Economic Policy Research, Sesimbra, Portugal, October 29, 1993. (Discussant.) View Details
  23. Globalizing Financial Education

    Keywords: Globalization; Finance; Education;

    Citation:

    Kester, W. Carl. "Globalizing Financial Education." Lecture at the Financial Management Association Annual Meeting, Toronto, Canada, October 13, 1993. (Panel Speaker.) View Details
  24. Shareholder Value Creation: Solely a U.S. Concept?

    Keywords: Business and Shareholder Relations; Value Creation; United States;

    Citation:

    Kester, W. Carl. "Shareholder Value Creation: Solely a U.S. Concept?" Lecture at the Frederick B. Whittemore Conference on the International Capital Acquisition Process, Tuck School of Business Administration, Woodstock, VT, May 21, 1993. (Discussant.) View Details
  25. The United States Experience

    Keywords: United States;

    Citation:

    Kester, W. Carl. "The United States Experience." Lecture at the Conference on Relational Investing, Columbia Law School, Center for Law and Economic Studies, New York, NY, May 7, 1993. (Panel speaker.) View Details
  26. The LBO Association as a Relational Investment Regime: Clinical Evidence From Clayton Dubilier & Rice, Inc.

    Keywords: Investment; Business Ventures;

    Citation:

    Kester, W. Carl, and Timothy A. Luehrman. "The LBO Association as a Relational Investment Regime: Clinical Evidence From Clayton Dubilier & Rice, Inc." Lecture at the Conference on Relational Investing, Columbia Law School, Center for Law and Economic Studies, New York, NY, May 7, 1993. (Presented research paper with co-author.) View Details
  27. Key Issues in U.S. Boardrooms: The Current Debate and Possible Directions for Reform

    Keywords: Governing Rules, Regulations, and Reforms; United States;

    Citation:

    Kester, W. Carl. "Key Issues in U.S. Boardrooms: The Current Debate and Possible Directions for Reform." Lecture at the Conference on Wither Corporate Governance, Henley Management College, London, November 18, 1992. (Jointly sponsored by the Strategic Management Society. Invited Speaker.) View Details
  28. Global Patterns in Corporate Governance and Regulation

    Keywords: Governing Rules, Regulations, and Reforms; Corporate Governance;

    Citation:

    Kester, W. Carl. "Global Patterns in Corporate Governance and Regulation." Lecture at the Royal Institute of International Affairs and The Strategic Planning Society Conference on National versus European Regulation: Political, Economic and Corporate Strategic Dimensions, London, November 25, 1991. (Panel speaker.) View Details
  29. Capital Choices: Changing the Way America Invests in Industry

    Keywords: Capital; Investment; United States;

    Citation:

    Kester, W. Carl. "Capital Choices: Changing the Way America Invests in Industry." Lecture at the Competitiveness Policy Council, Meeting of the Subcouncil on Corporate Governance and Financial Markets, San Francisco, CA, September 24, 1992. (Commentator.) View Details
  30. Economic Strategies for a Global Economy

    Keywords: Strategy; Economics; Global Range;

    Citation:

    Kester, W. Carl. "Economic Strategies for a Global Economy." Lecture at the United States Senate, hearings of the U.S. Senate Committee on the Judiciary (Senator Joseph R. Biden, Jr., Delaware, Chairman), U.S.Senate, Washington, D.C., September 23, 1992. (Provided testimony concerning capital investment, corporate governance, cost of capital, and the international competitiveness of the U.S. economy.) View Details
  31. Banks in the Board Room: The American Versus Japanese and German Experiences

    Keywords: Banks and Banking; Banking Industry; United States; Germany; Japan;

    Citation:

    Kester, W. Carl. "Banks in the Board Room: The American Versus Japanese and German Experiences." Lecture at the Harvard Business School Research Colloquium on Managing the Financial Services Firm in a Global Environment, Boston, MA, May 27, 1992. (Presenter.) View Details
  32. Japanese Corporate Governance: Source of Efficiency or Restraint of Trade?

    Keywords: Corporate Governance; Trade; Japan;

    Citation:

    Kester, W. Carl. "Japanese Corporate Governance: Source of Efficiency or Restraint of Trade?" Lecture at the Conference on the Japanese Financial Market and Corporate Managerial Behavior, International University of Japan, Tokyo, Japan, May 11–13, 1992. (Research presenter.) View Details
  33. Have Japanese Corporations Made Good Use of Their Low Cost of Capital?

    Keywords: Capital; Cost of Capital; Japan;

    Citation:

    Kester, W. Carl. "Have Japanese Corporations Made Good Use of Their Low Cost of Capital?" Lecture at the Conference on the Japanese Financial Market and Corporate Managerial Behavior, International University of Japan, Tokyo, Japan, May 11–13, 1992. (Panelist.) View Details
  34. Emerging Role of Japanese Companies in Domestic and International Mergers and Acquisitions

    Keywords: Mergers and Acquisitions; Japan;

    Citation:

    Kester, W. Carl. "Emerging Role of Japanese Companies in Domestic and International Mergers and Acquisitions." Lecture at the Conference on the Japanese Financial Market and Corporate Managerial Behavior, International University of Japan, May 11–13, 1992. (Panelist.) View Details
  35. The Role of Shareholders: An International Perspective

    Keywords: Business and Shareholder Relations;

    Citation:

    Kester, W. Carl. "The Role of Shareholders: An International Perspective." Lecture at the Forum on Corporate Governance and American Economic Competitiveness: The Role of Shareholders, Directors and Management, U.S. Securities and Exchange Commission, Washington, D.C., March 1, 1992. (Panel speaker.) View Details
  36. How are Changes in the Global Capital Markets Affecting Interaction between Shareholders and Corporations?

    Keywords: Capital Markets; Business and Shareholder Relations;

    Citation:

    Kester, W. Carl. "How are Changes in the Global Capital Markets Affecting Interaction between Shareholders and Corporations?" Lecture at the Forum on Cooperation Between Shareholders and Corporations: An Agenda for Competitiveness, Investor Responsibility Research Center, Washington, D.C., October 3, 1991. (Panel moderator.) View Details
  37. Takeover Bids and the Relative Prices of Shares that Differ in their Voting Rights

    Keywords: Stock Shares;

    Citation:

    Kester, W. Carl. "Takeover Bids and the Relative Prices of Shares that Differ in their Voting Rights." Lecture at the Workshop on Corporate Control and Corporate Restructuring, Center for Economic Policy Research, Stockholm, Sweden, September 27–28, 1991. (Jointly sponsored by the European Science Foundation. Discussant.) View Details
  38. Financial Sources of Competitive Advantage: America vs. Japan

    Keywords: Finance; Competitive Advantage; United States; Japan;

    Citation:

    Kester, W. Carl. "Financial Sources of Competitive Advantage: America vs. Japan." Lecture at the Financial Executives Institute meeting of the Committee on International Business, St. Louis, MO, May 10, 1991. (Guest speaker.) View Details
  39. Contractual Governance and Investment Time Horizons

    Keywords: Governance; Contracts; Investment;

    Citation:

    Kester, W. Carl. "Contractual Governance and Investment Time Horizons." Lecture at the Meeting of the Study Group on Policies Influencing Technological Innovations, Council on Foreign Relations, New York, NY, March 7, 1991. (Guest speaker.) View Details
  40. Financial Sources of Competitive Advantage

    Keywords: Finance; Competitive Advantage;

    Citation:

    Kester, W. Carl. "Financial Sources of Competitive Advantage." Lecture at the Financial Management Association Annual Meeting, Orlando, FL, October 25, 1990. (Panel speaker.) View Details
  41. Dainippon Ink and Chemicals Co., Inc

    Keywords: Chemical Industry;

    Citation:

    Kester, W. Carl. "Dainippon Ink and Chemicals Co., Inc." Lecture at the Harvard Business School Club of Greater New York Saturday Seminar on Japanese Investment in U.S. Companies, New York, NY, June 16, 1990. (Case discussion leader.) View Details
  42. Are Capital Costs Lower in Japan?

    Keywords: Cost of Capital; Japan;

    Citation:

    Kester, W. Carl. "Are Capital Costs Lower in Japan?" Lecture at the U.S.-Japan Conference on Investment and Trade Friction, Leonard N. Stern School of Business, Tokyo, Japan, November 15–16, 1989. (Research presenter.) View Details
  43. The Causes and Implications of Japan's High Savings Rate

    Keywords: Saving; Japan;

    Citation:

    Kester, W. Carl. "The Causes and Implications of Japan's High Savings Rate." Lecture at the U.S.-Japan Conference on Investment and Trade Friction, Leonard N. Stern School of Business, November 15–16, 1989. (Discussant.) View Details
  44. The Rise of Japan in International Business: Implications for the American Business Environment

    Keywords: Business Ventures; Situation or Environment; Japan; United States;

    Citation:

    Kester, W. Carl. "The Rise of Japan in International Business: Implications for the American Business Environment." University of Southern California, Center for International Business Education and Research, Los Angeles, CA, April 20–22, 1989. (Presenter of research on Japanese mergers and acquisitions, and discussant of research on the globalization of Japanese corporate finance.) View Details
  45. Bank-Manufacturer Relationships in the United States and Japan

    Keywords: Relationships; Banks and Banking; Manufacturing Industry; Banking Industry; United States; Japan;

    Citation:

    Kester, W. Carl. "Bank-Manufacturer Relationships in the United States and Japan." Lecture at the Manufacturing Studies Board of the National Research Council Conference on Manufacturing and Finance, Washington, D.C., May 16, 1988. (Moderator for the panel discussion.) View Details
  46. The Global Integration of Financial Markets

    Keywords: Markets; Finance; Integration;

    Citation:

    Kester, W. Carl. "The Global Integration of Financial Markets." Lecture at the Harvard Business School Research Colloquium, Development and Changes in the U.S. Financial Services Sector, Boston, MA, June 23, 1986. (Session discussion leader.) View Details
  47. Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations

    Keywords: Capital; Ownership; Manufacturing Industry; United States; Japan;

    Citation:

    Kester, W. Carl. "Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations." Lecture at the International Competition Conference, Harvard Kennedy School, Center for Business and Government, Ft. Lauderdale, FL, March 8, 1985. (Research presenter.) View Details
  48. Turning Growth Options into Real Assets

    Keywords: Growth and Development; Assets;

    Citation:

    Kester, W. Carl. "Turning Growth Options into Real Assets." Lecture at the Harvard Business School 75th Anniversary Colloquium, Boston, MA, June 25, 1984. (Research presenter.) View Details

Articles and Essays / Corporate Governance

  1. Governance, Contracting, and Investment Time Horizons: A Look at Japan and Germany

    Keywords: Corporate Governance; Contracts; Investment; Japan; Germany;

    Citation:

    Kester, W. C. "Governance, Contracting, and Investment Time Horizons: A Look at Japan and Germany." In Studies in International Corporate Finance and Governance Systems: A Comparison of the U.S., Japan, and Europe, edited by Donald Chew. Oxford University Press, 1997. View Details
  2. American and Japanese Corporate Governance: Converging to Best Practice?

    Keywords: Corporate Governance; United States; Japan;

    Citation:

    Kester, W. C. "American and Japanese Corporate Governance: Converging to Best Practice?" In National Diversity and Global Capitalism, edited by S. Berger and R. Dore. Ithaca, NY: Cornell University Press, 1996. View Details
  3. The LBO Association as a Relational Investing Regime: Clinical Evidence From Clayton, Dubilier & Rice, Inc.

    Keywords: Leveraged Buyouts; Alliances; Investment;

    Citation:

    Luehrman, Timothy A., and W. Carl Kester. "The LBO Association as a Relational Investing Regime: Clinical Evidence From Clayton, Dubilier & Rice, Inc." In Meaningful Relationships: Institutional Investors, Relational Investing, and the Future of Corporate Governance, edited by L Lowenstein. Oxford: Oxford University Press, 1996. View Details
  4. Rehabilitating the Leveraged Buyout: A Look at Clayton, Dubilier and Rice

    Keywords: Leveraged Buyouts; Information;

    Citation:

    Kester, W. C., and T. A. Luehrman. "Rehabilitating the Leveraged Buyout: A Look at Clayton, Dubilier and Rice." Harvard Business Review 73, no. 3 (May–June 1995): 119–130. View Details
  5. The Best of Both Worlds: Can the U.S. and Japan Agree on Corporate Governance

    Keywords: Corporate Governance; United States; Japan;

    Citation:

    Kester, W. C. "The Best of Both Worlds: Can the U.S. and Japan Agree on Corporate Governance." Japan Scope (fall 1993): 12–17. View Details
  6. Banks in the Boardroom: Germany, Japan, and the United States

    Keywords: Banks and Banking; Governing and Advisory Boards; Germany; Japan; United States;

    Citation:

    Kester, W. C. "Banks in the Boardroom: Germany, Japan, and the United States." In Financial Services: Perspectives and Challenges, edited by Samuel L. Hayes III. Boston, MA: Harvard Business School Press, 1993. View Details
  7. Japanese Corporate Governance: Source of Efficiency or Restraint of Trade?

    Keywords: Corporate Governance; Performance Efficiency; Japan;

    Citation:

    Kester, W. C. "Japanese Corporate Governance: Source of Efficiency or Restraint of Trade?" In Restructuring Japan's Financial Markets, edited by I. Walter and T. Hiraki. Homewood, IL: Business One Irwin, 1993. View Details
  8. Industrial Groups as Contractual Governance Systems

    Keywords: Groups and Teams; Governance;

    Citation:

    Kester, W. C. "Industrial Groups as Contractual Governance Systems." Oxford Review of Economic Policy 8, no. 3 (autumn 1992): 24–44. View Details
  9. Governance, Contracting, and Investment Time Horizons: A Look at Japan and Germany

    Keywords: Governance; Investment; Japan; Germany;

    Citation:

    Kester, W. C. "Governance, Contracting, and Investment Time Horizons: A Look at Japan and Germany." Continental Bank Journal of Applied Corporate Finance 5, no. 2 (summer 1992): 83–98. View Details
  10. Japanese Corporate Governance and the Conservation of Value in Financial Distress

    Keywords: Value; Finance; Japan;

    Citation:

    Kester, W. C. "Japanese Corporate Governance and the Conservation of Value in Financial Distress." Continental Bank Journal of Applied Corporate Finance 4, no. 2 (summer 1991): 98–104. View Details
  11. Global Players, Western Tactics, Japanese Outcomes: The New Japanese Market for Corporate Control

    Keywords: Global Range; Outcome or Result; Markets;

  12. The Hidden Costs of Japanese Success

    Keywords: Cost; Success; Japan;

    Citation:

    Kester, W. C. "The Hidden Costs of Japanese Success." Continental Bank Journal of Applied Corporate Finance 2, no. 4 (winter 1991): 90–97. View Details

Articles and Essays / Cost of Capital and Capital Structure

  1. What Makes You Think U.S. Capital Is So Expensive?

    Keywords: Capital; Local Range; United States;

    Citation:

    Kester, W. C., and T. A. Luehrman. "What Makes You Think U.S. Capital Is So Expensive?" Continental Bank Journal of Applied Corporate Finance 5, no. 2 (summer 1992): 29–41. View Details
  2. The Myth of Japan's Low-cost Capital

    Keywords: Capital; Japan;

    Citation:

    Kester, W. C., and T. A. Luehrman. "The Myth of Japan's Low-cost Capital." Harvard Business Review 70, no. 3 (May–June 1992): 130–138. View Details
  3. Cross-country Differences in the Cost of Capital: A Survey and Evaluation of Recent Empirical Studies

    Keywords: Cost; Capital;

    Citation:

    Kester, W. C., and T. A. Luehrman. "Cross-country Differences in the Cost of Capital: A Survey and Evaluation of Recent Empirical Studies." Continental Bank Journal of Applied Corporate Finance 5, no. 2 (summer 1992): 29–41. View Details
  4. The Price of Risk in the United States and Japan

    Keywords: Risk and Uncertainty; Price; United States; Japan;

    Citation:

    Kester, W. C., and T. A. Luehrman. "The Price of Risk in the United States and Japan." Japan and the World Economy 3, no. 3 (November 1991): 223–242. View Details
  5. Real Interest Rates and the Cost of Capital: A Comparison of the United States and Japan

    Keywords: Interest Rates; Cost; Capital; Information; United States; Japan;

    Citation:

    Luehrman, Timothy A., and W. Carl Kester. "Real Interest Rates and the Cost of Capital: A Comparison of the United States and Japan." Japan and the World Economy 1, no. 3 (July 1989): 279–301. View Details
  6. Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations

    Keywords: Capital Structure; Ownership; Organizational Structure; Business Ventures; United States; Japan;

    Citation:

    Kester, W. Carl. "Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations." Chap. 9 in International Competitiveness, edited by A. Michael Spence and Heather A Hazard, 263–287. Cambridge, MA: Ballinger Publishing Company, 1988. View Details
  7. Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations

    Keywords: Capital; Ownership; Production; Manufacturing Industry; United States; Japan;

    Citation:

    Kester, W. C. "Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations." Financial Management 15 (spring 1986): 5–16. View Details

Articles and Essays / Exchange Rates and Competitiveness

  1. Are We Feeling More Competitive Yet? The Exchange Rate Gambit

    Keywords: Currency Exchange Rate; Competition;

    Citation:

    Luehrman, Timothy A., and W. Carl Kester. "Are We Feeling More Competitive Yet? The Exchange Rate Gambit." MIT Sloan Management Review 30, no. 2 (winter 1989): 19–28. View Details
  2. Why Dollar Bashing Doesn't Work

    Keywords: Finance;

    Citation:

    Luehrman, Timothy A., and W. Carl Kester. "Why Dollar Bashing Doesn't Work." Fortune (October 27, 1986), 137–138. View Details

Articles and Essays / Strategic Capital Investment

  1. Delivering Value Through Growth

    Citation:

    Kester, W. Carl, and Arnold J. Lowenstein. "Delivering Value Through Growth." Harvard Business School Working Paper, No. 01-013, September 2000. View Details
  2. Turning Growth Options into Real Assets

    Keywords: Assets;

    Citation:

    Kester, W. C. "Turning Growth Options into Real Assets." In Capital Budgeting under Uncertainty: Advances and New Perspectives, edited by R. Aggarwal. Englewood Cliffs, NJ: Prentice Hall, 1992. View Details
  3. Capital Allocation Hurdle Rates, Budgets or Both?

    Keywords: Resource Allocation; Capital; Budgets and Budgeting;

    Citation:

    Kester, W. C., and R. Taggart. "Capital Allocation Hurdle Rates, Budgets or Both?" MIT Sloan Management Review Vol. 30, no. 3 (spring 1989): 83–90. View Details
  4. An Options Approach to Corporate Finance

    Keywords: Corporate Finance;

    Citation:

    Kester, W. Carl. "An Options Approach to Corporate Finance." In Handbook of Corporate Finance. 6th ed. Edited by Edward I. Altman, 5.1–35. New York: John Wiley & Sons, 1986. View Details
  5. Today's Options for Tomorrow's Growth

    Keywords: Growth and Development;

    Citation:

    Kester, W. C. "Today's Options for Tomorrow's Growth." Harvard Business Review (March–April 1984): 153–160. View Details

Teaching and Training Materials

  1. Finance Simulation: M&A in Wine Country (Facilitator's Guide)

    Keywords: Mergers and Acquisitions; Negotiation; Valuation; Value Creation; Food and Beverage Industry; Agriculture and Agribusiness Industry;

    Citation:

    Luehrman, Timothy A., W. Carl Kester, and Heide Diener Abelli. "Finance Simulation: M&A in Wine Country (Facilitator's Guide)." Simulation and Teaching Note. Watertown, MA: Harvard Business Publishing, 2009. View Details
  2. Finance Simulation: M&A in Wine Country: No. 3289.

    In this simulation, students play the role of CEO at one of three publicly-traded wine producers: Starshine, Bel Vino, or International Beverage. Each player evaluates merger and/or acquisition opportunities among the three companies and then determines reservation prices, values targets, and negotiates over deal terms before deciding whether to accept or reject final offers. Each company's stock price reacts to the bidding activity, and all bids are public, creating a competitive and fast-paced negotiation environment. The simulation contains a built-in chat feature, allowing students to negotiate privately online. Ideal as a capstone experience in a first-year MBA finance course. Students should have exposure to the fundamentals of finance before playing. Also suitable for elective courses in Finance, Negotiation and Strategy. Minimum technical specifications: Computer with minimum 1024x768 screen resolution, High speed internet connection (DSL / cable modem quality), Windows 2000, XP, or Vista / Macintosh operating systems, Internet Explorer 6+ / Firefox 2.0+ web browser with javascript and cookies enabled, Flash Player 9+ browser plug-in, Microsoft Excel (optional but several simulations allow students to export data for manipulation in Excel).

    Keywords: Mergers and Acquisitions; Negotiation; Valuation; Value Creation; Food and Beverage Industry; Agriculture and Agribusiness Industry;

    Citation:

    Luehrman, Timothy A., and W. Carl Kester. "Finance Simulation: M&A in Wine Country: No. 3289." Simulation and Teaching Note. Watertown, MA: Harvard Business Publishing, 2009. Electronic. View Details

HBS Course Materials / Global Financing

  1. Fraikin SA

    Provides an example of a so-called "whole business" securitization. In early 2004, Fraikin, France's leading industrial vehicle rental company, compares several alternatives for refinancing a large bridge loan within a year. Presents three primary options: a classic leveraged buyout, an asset-backed loan, and a loan based on securitizing Fraikin's truck rental contracts. Asks students to evaluate the advantages and disadvantages of each option, particularly the securitization. Elicits discussion about why securitization appears to be the least cost financing alternative and whether it is worth the high transaction costs involved.

    Keywords: Debt Securities; Transportation; Renting or Rental; Transportation Industry; Service Industry; France;

    Citation:

    Kester, W. Carl, Vincent Marie Dessain, and Monika Stachowiak. "Fraikin SA." Harvard Business School Case 206-090, February 2006. View Details
  2. Compania de Telefonos de Chile

    The newly privatized Chilean telephone company, Compania de Telefonos de Chile (CTC) must raise substantial new funds externally in order to finance its expansion program. This task is complicated by Chile's small, illiquid capital markets and the skeptical view of Latin American borrowers held by investors outside of the region. CTC's chief financial officer must determine if listing American Depository Receipts (ADRs) on the New York Stock Exchange is a viable financing option for the company.

    Keywords: Capital Markets; Financing and Loans; Managerial Roles; Privatization; Expansion; Telecommunications Industry; South America; Chile;

    Citation:

    Kester, W. Carl, Enrique Ostale, and Charles McHugh La Follette. "Compania de Telefonos de Chile." Harvard Business School Case 293-015, August 1992. (Revised June 1993.) View Details
  3. Compania de Telefonos de Chile (TN)

    Teaching Note for (9-293-015).

    Keywords: Telecommunications Industry; Chile; South America;

    Citation:

    Kester, W. Carl. "Compania de Telefonos de Chile (TN)." Harvard Business School Teaching Note 298-019, July 1997. View Details
  4. Alcoa of Australia Ltd. (TN)

    Keywords: Mining Industry; Manufacturing Industry; Australia;

    Citation:

    Kester, W. Carl. "Alcoa of Australia Ltd. (TN)." Harvard Business School Teaching Note 293-001, March 1993. View Details
  5. R.J. Reynolds International Financing

    Reynolds must source a substantial portion of the financing of its Nabisco acquisition in offshore bond markets. Morgan Guaranty has proposed a yen/dollar dual currency Eurobond that could be hedged into dollars. This structure is compared to Eurodollar Bonds, Euroyen Bonds, and Euroyen Bonds swapped or hedged into dollars.

    Keywords: Acquisition; Capital Markets; Currency Exchange Rate; Credit Derivatives and Swaps; Bonds; Financing and Loans;

    Citation:

    Kester, W. Carl, and William B. Allen. "R.J. Reynolds International Financing." Harvard Business School Case 287-057, January 1987. (Revised November 1991.) View Details
  6. R.J. Reynolds International Financing, Teaching Note

    Teaching Note for (9-287-057).

    Keywords: International Finance;

    Citation:

    Kester, W. Carl. "R.J. Reynolds International Financing, Teaching Note." Harvard Business School Teaching Note 290-010, October 1989. (Revised January 1993.) View Details
  7. International Pharmaceuticals Inc.

    Keywords: Pharmaceutical Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "International Pharmaceuticals Inc." Harvard Business School Case 288-011, September 1987. (Revised November 1991.) View Details
  8. International Pharmaceuticals Inc., Teaching Note

    Keywords: Pharmaceutical Industry;

    Citation:

    Kester, W. Carl. "International Pharmaceuticals Inc., Teaching Note." Harvard Business School Teaching Note 290-024, January 1990. (Revised January 1993.) View Details
  9. Fiat--1986

    Describes Fiat's 1986 Euro-equity offering of $2.1 billion of stock. The offering proved to be highly problematic, particularly for the lead manager, Deutsche Bank, and raises questions about the future of the Euro-equity market. Students are provided opportunities to analyze what went wrong. Numerous specifics about the execution of the deal are open to criticism. However, it also appears that the adverse signalling consequences of such a large equity sale played a decisive role in the offerings failure.

    Keywords: Equity; Stocks; Negotiation Deal; Outcome or Result; Opportunities; Auto Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Fiat--1986." Harvard Business School Case 288-003, October 1987. (Revised November 1991.) View Details
  10. Fiat--1986 (TN)

    Teaching Note for (9-288-003).

    Keywords: Auto Industry; Italy;

    Citation:

    Kester, W. Carl. "Fiat--1986 (TN)." Harvard Business School Teaching Note 290-057, April 1990. (Revised January 1993.) View Details
  11. Novo Industri A/S--1981

    This small but rapidly growing Danish biochemical company must choose among several financing opportunities that include a convertible Eurobond, a rights offering in Denmark and an issue of new common shares in the United States. The case involves a broad range of issues concerning the ability of a multinational company to lower its cost of capital by tapping different capital markets worldwide.

    Keywords: Capital Markets; Cost of Capital; Bonds; Stock Shares; Financing and Loans; Globalization; Biotechnology Industry; Chemical Industry; Denmark; United States;

    Citation:

    Kester, W. Carl, and Glynn Ferguson. "Novo Industri A/S--1981." Harvard Business School Case 286-084, February 1986. (Revised November 1992.) View Details
  12. Novo Industri A/S--1981, Teaching Note

    Teaching Note for (9-286-084).

    Keywords: Biotechnology Industry; Chemical Industry; Denmark; United States;

    Citation:

    Kester, W. Carl. "Novo Industri A/S--1981, Teaching Note." Harvard Business School Teaching Note 290-037, June 1990. (Revised April 1993.) View Details
  13. Elders IXL Ltd.--1986

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Elders IXL Ltd.--1986." Harvard Business School Case 288-042, March 1988. (Revised November 1991.) View Details
  14. Elders IXL Ltd.--1986, Teaching Note

    Citation:

    Kester, W. Carl. "Elders IXL Ltd.--1986, Teaching Note." Harvard Business School Teaching Note 290-038, June 1990. (Revised February 1993.) View Details
  15. An Tai Bao Coal Mining Project

    An Tai Bao is the world's largest open-pit coal mine and is located in China's Shanxi province. After eight years of planning and negotiating, Occidental Petroleum, the foreign partner in the deal, is about to sign an ownership and financing agreement for $475 million that involves $20 million of its own equity and limited recourse. The deal contains a number of unusual features including the tying of recourse to nonconcurrent, partial competition tests, and a covenant forcing sponsors to buy back the entire project from the joint venture owning it in the event of postcompletion default. Students are required to determine if the terms of the deal are attractive to each of the parties involved.

    Keywords: Planning; Agreements and Arrangements; Non-Renewable Energy; Equity; Partners and Partnerships; Negotiation Deal; Joint Ventures; Mining Industry; China;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "An Tai Bao Coal Mining Project." Harvard Business School Case 288-041, June 1988. (Revised December 1991.) View Details
  16. An Tai Bao Coal Mining Project, Teaching Note

    Teaching Note for (9-288-041).

    Keywords: Mining Industry;

    Citation:

    Kester, W. Carl. "An Tai Bao Coal Mining Project, Teaching Note." Harvard Business School Teaching Note 290-039, May 1990. (Revised February 1993.) View Details

HBS Course Materials / Cross-Border Valuation

  1. Note on Cross-Border Valuation

    Provides a fundamental technical review of valuation techniques used to assess cross-border investments. Discusses the discounting of free cash flows with a weighted average cost of capital, the use of adjusted present value, and the importance of considering real options. Special concerns such as foreign-exchange risk, country risks, and so forth are also discussed.

    Keywords: Valuation; Cross-Cultural and Cross-Border Issues;

    Citation:

    Kester, W. Carl, and Julia Morley. "Note on Cross-Border Valuation." Harvard Business School Background Note 292-084, February 1992. (Revised July 1992.) View Details
  2. Note on Cross-Border Valuation (TN)

    Teaching Note for (9-292-084).

    Citation:

    Kester, W. Carl. "Note on Cross-Border Valuation (TN)." Harvard Business School Teaching Note 293-005, March 1993. View Details
  3. Note on U.S. Taxation of Foreign-Source Corporate Income (TN)

    Teaching Note for (9-292-101).

    Keywords: Taxation; United States;

    Citation:

    Kester, W. Carl. "Note on U.S. Taxation of Foreign-Source Corporate Income (TN)." Harvard Business School Teaching Note 293-009, March 1993. View Details
  4. Simmons Japan Ltd.

    Concerns the first leveraged buyout to occur in Japan. Analytic tasks include a valuation of the company and an assessment of its debt capacity. Also provides opportunities to discuss agency costs associated with alternative capital and equity ownership structures, differences between U.S. and Japanese corporate finance practices, and the potential role of leveraged buyouts in the restructuring of Japanese manufacturing.

    Keywords: Leveraged Buyouts; Restructuring; Borrowing and Debt; Capital Structure; Cost; Equity; Production; Valuation; Japan; United States;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Simmons Japan Ltd." Harvard Business School Case 289-001, November 1988. (Revised September 1991.) View Details
  5. Simmons Japan Ltd., Teaching Note

    Teaching Note for (9-289-001).

    Keywords: Japan;

    Citation:

    Kester, W. Carl. "Simmons Japan Ltd., Teaching Note." Harvard Business School Teaching Note 290-017, December 1989. (Revised December 1992.) View Details
  6. Nippon-WTI Ltd.

    A Japanese joint venture between a U.S. parent and a Japanese parent has proposed that 100% of the U.S. parent's product be produced in Japan rather than the 40% currently being manufactured there. This would require the U.S. parent to give up a dollar profit earned on the manufacture of the product in exchange for a yen royalty. The proposal forces the U.S. parent to evaluate its operating exposure to the yen in light of its broader Asian strategy.

    Keywords: Joint Ventures; Currency Exchange Rate; Profit; Product; Production; Strategy; Manufacturing Industry; Asia; Japan; United States;

    Citation:

    Kester, W. Carl, and Glynn Ferguson. "Nippon-WTI Ltd." Harvard Business School Case 287-006, July 1986. (Revised July 1991.) View Details
  7. Nippon-WTI Ltd., Teaching Note

    Teaching Note for (9-287-006).

    Keywords: Manufacturing Industry; Asia; Japan; United States;

    Citation:

    Kester, W. Carl. "Nippon-WTI Ltd., Teaching Note." Harvard Business School Teaching Note 290-028, February 1990. (Revised January 1993.) View Details
  8. Guardian Industries Corp.

    Citation:

    Kester, W. Carl, and Julia Morley. "Guardian Industries Corp." Harvard Business School Case 292-083, June 1992. View Details

HBS Course Materials / Foreign Exchange Markets and Exchange Rate Determination

  1. Managing the U.S. Dollar in the 1980s

    Provides numerical data and alternative explanations concerning the U.S. dollar's rise and subsequent fall in value from 1981 through 1987. Students are challenged to study the evidence and make their own inferences concerning the dollar's movements and the degree of its mispricing. Introduces students to competing theories of exchange rate determination and the analysis of macroeconomic data pertinent to the pricing of foreign exchange.

    Keywords: Macroeconomics; Currency Exchange Rate; Price; Theory; United States;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Managing the U.S. Dollar in the 1980s." Harvard Business School Case 292-001, July 1991. View Details
  2. Managing the U.S. Dollar in the 1980s (TN)

    Teaching Note for (9-292-001).

    Keywords: Management; Currency; United States;

    Citation:

    Kester, W. Carl. "Managing the U.S. Dollar in the 1980s (TN)." Harvard Business School Teaching Note 292-119, June 1992. (Revised December 1992.) View Details
  3. Understanding the U.S. Dollar in 1985

    Keywords: Currency; United States;

    Citation:

    Kester, W. Carl. "Understanding the U.S. Dollar in 1985." Harvard Business School Case 286-054, December 1985. (Revised June 1991.) View Details
  4. Understanding the U.S. Dollar in 1987

    Keywords: Currency; United States;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Understanding the U.S. Dollar in 1987." Harvard Business School Case 287-077, March 1987. (Revised June 1991.) View Details
  5. Understanding the U.S. Dollar (TN)

    Keywords: Money; United States;

    Citation:

    Kester, W. Carl. "Understanding the U.S. Dollar (TN)." Harvard Business School Teaching Note 290-045, July 1989. View Details
  6. Understanding the U.S. Dollar in 1985 & 1987, Teaching Note

    Keywords: Financing and Loans; Agreements and Arrangements; Computer Industry;

    Citation:

    Kester, W. Carl. "Understanding the U.S. Dollar in 1985 & 1987, Teaching Note." Harvard Business School Teaching Note 290-056, April 1990. (Revised June 1993.) View Details
  7. Foreign Exchange Market, Background Note and Problem Set, The

    Discusses the background of the foreign exchange market. This includes information about the participants and how the market operates. The problem set verses students in the arithmetic in the many common foreign exchange problems such as calculating forward premium and discounts, determining hedge ratios, covered interest arbitrage, etc.

    Keywords: Financial Markets;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Foreign Exchange Market, Background Note and Problem Set, The." Harvard Business School Background Note 287-033, February 1987. (Revised September 1991.) View Details
  8. Foreign Exchange Market Background Note and Problem Set, The (TN)

    Teaching Note for (9-287-033).

    Keywords: International Finance;

    Citation:

    Kester, W. Carl. "Foreign Exchange Market Background Note and Problem Set, The (TN)." Harvard Business School Teaching Note 289-026, November 1988. (Revised December 1992.) View Details
  9. Bank for International Development, Software Case

    A hypothetical case in which an assistant treasurer of a supranational bank is asked to determine in which currencies it has been cheaper ex post to borrow. An integral part of the case is a Lotus 1-2-3 worksheet containing monthly data on yen and dollar interest rates, exchange rates, and inflation rates from January 1976 to October 1985. The worksheet with accompanying questions prompts students to study the various parity relationships between the yen and the dollar numerically, graphically, or statistically. Students are challenged to draw inferences concerning the circumstances under which a treasurer should expect to prefer borrowing in one currency rather than others. Requires Case Software diskette (9-289-534).

    Keywords: Decisions; Interest Rates; International Finance; Relationships; Currency; Management Analysis, Tools, and Techniques; Data and Data Sets; Inflation and Deflation;

    Citation:

    Kester, W. Carl, and Timothy A. Luehrman. "Bank for International Development, Software Case." Harvard Business School Case 289-034, January 1989. (Revised July 1991.) View Details
  10. Bank for International Development (TN)

    Teaching Note for (9-289-034).

    Keywords: International Finance; Banks and Banking; Banking Industry;

    Citation:

    Kester, W. Carl, and Timothy A. Luehrman. "Bank for International Development (TN)." Harvard Business School Teaching Note 290-019, March 1990. (Revised December 1992.) View Details
  11. Note on Fundamental Parity Conditions

    Provides a simple framework for analyzing expected exchange rate movements. Basic parity and equilibrium conditions are presented including purchasing power parity, forward parity, interest rate parity, the domestic Fisher effect, and the international Fisher effect (Fisher open). Empirical evidence about these conditions are discussed. References are provided.

    Keywords: Currency Exchange Rate; Situation or Environment;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Note on Fundamental Parity Conditions." Harvard Business School Background Note 288-016, February 1988. (Revised November 1994.) View Details
  12. Note on Fundamental Parity Conditions, Teaching Note

    Teaching Note for (9-288-016).

    Keywords: Finance; Theory;

    Citation:

    Kester, W. Carl. "Note on Fundamental Parity Conditions, Teaching Note." Harvard Business School Teaching Note 290-026, December 1989. (Revised December 1992.) View Details

HBS Course Materials / Global Market for Corporate Control

  1. HOYA Corporation (A)

    In 2007, HOYA of Japan must decide whether to change its friendly exchange offer for Pentax into a hostile cash tender offer. A surprising sequence of events had caused a friendly merger agreement to fall apart, resulting in a boardroom coup at Pentax and the intervention of the Sparx Group, an indigenous activist Japanese hedge fund. The case raises issues about corporate valuation, corporate governance, shareholder activism, takeover deal tactics, and the Japanese market for corporate control.

    Keywords: Mergers and Acquisitions; Investment Activism; Corporate Governance; Governance Controls; Governing and Advisory Boards; Negotiation Tactics; Business and Shareholder Relations; Valuation; Japan;

    Citation:

    Kester, W. Carl, and Masako Egawa. "HOYA Corporation (A)." Harvard Business School Case 209-065, March 2009. (Revised September 2010.) View Details
  2. HOYA Corporation (A)

    Keywords: Mergers and Acquisitions; Investment Activism; Corporate Governance; Governance Controls; Governing and Advisory Boards; Negotiation Tactics; Business and Shareholder Relations; Valuation; Japan;

    Citation:

    Kester, W. Carl. "HOYA Corporation (A)." Harvard Business School Spreadsheet Supplement 213-721, March 2013. View Details
  3. HOYA Corporation (B)

    HOYA Corporation (B) provides details on the decisions made and the outcome of the situations described in the HOYA Corporation (A) case.

    Keywords: Decisions; Finance; Outcome or Result;

    Citation:

    Kester, W. Carl, and Masako Egawa. "HOYA Corporation (B)." Harvard Business School Supplement 209-066, March 2009. View Details
  4. Note on Corporate Governance Systems: The United States, Japan, and Germany

    Describes and compares the corporate governance systems commonly found in the United States, Japan, and Germany.

    Keywords: Corporate Governance; United States; Japan; Germany;

    Citation:

    Kester, W. Carl, and Robert W. Lightfoot. "Note on Corporate Governance Systems: The United States, Japan, and Germany." Harvard Business School Background Note 292-012, October 1991. (Revised December 1992.) View Details
  5. Note on Corporate Governance Systems: The United States, Japan, and Germany (TN)

    Teaching Note for (9-292-012).

    Keywords: United States; Japan; Germany;

    Citation:

    Kester, W. Carl. "Note on Corporate Governance Systems: The United States, Japan, and Germany (TN)." Harvard Business School Teaching Note 293-004, April 1993. View Details
  6. Koito Manufacturing Ltd.

    Having acquired a 26% stake in Koito Manufacturing, a Japanese automotive parts supplier in the Toyota Group, T. Boone Pickens seeks a seat on Koito's board of directors. Koito's management resists, claiming Pickens is an unhelpful greenmailer, not a true long-term investor. The struggle between the two provides students with a chance to compare and contrast American and Japanese corporate governance practices. Debate centers on whether the Japanese system fosters efficiency or merely market power that reduces economic welfare.

    Keywords: Acquisition; Debates; Corporate Governance; Production; Supply Chain; Performance Efficiency; Welfare or Wellbeing; Auto Industry; Japan; United States;

    Citation:

    Kester, W. Carl, and Robert W. Lightfoot. "Koito Manufacturing Ltd." Harvard Business School Case 291-027, April 1991. (Revised July 1992.) View Details
  7. Koito Manufacturing Ltd. (TN)

    Teaching Note for (9-291-027).

    Keywords: Auto Industry; Japan; United States;

    Citation:

    Kester, W. Carl. "Koito Manufacturing Ltd. (TN)." Harvard Business School Teaching Note 293-003, April 1993. View Details
  8. Compagnie Generale D'Electricite

    Keywords: Energy Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Compagnie Generale D'Electricite." Harvard Business School Case 289-002, December 1988. (Revised December 1991.) View Details
  9. Compagnie Generale D'Electricite, Teaching Note

    Keywords: Utilities Industry;

    Citation:

    Kester, W. Carl. "Compagnie Generale D'Electricite, Teaching Note." Harvard Business School Teaching Note 290-043, May 1990. (Revised February 1993.) View Details
  10. Distillers Company plc (A)

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Distillers Company plc (A)." Harvard Business School Case 287-062, January 1987. (Revised December 1991.) View Details
  11. Distillers Company plc (B)

    Keywords: Food and Beverage Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Distillers Company plc (B)." Harvard Business School Supplement 287-065, February 1987. (Revised November 1991.) View Details
  12. Distillers Company plc (C)

    Keywords: Food and Beverage Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Distillers Company plc (C)." Harvard Business School Supplement 287-066, February 1987. (Revised November 1991.) View Details
  13. Distillers Company plc (D)

    Keywords: Food and Beverage Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Distillers Company plc (D)." Harvard Business School Supplement 287-067, February 1987. (Revised November 1991.) View Details
  14. Distillers Company plc (E)

    Keywords: Food and Beverage Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Distillers Company plc (E)." Harvard Business School Supplement 287-068, February 1987. (Revised November 1991.) View Details
  15. Distillers Company plc (A), (B), (C), (D), and (E), Teaching Note

    Keywords: Food and Beverage Industry;

    Citation:

    Kester, W. Carl. "Distillers Company plc (A), (B), (C), (D), and (E), Teaching Note." Harvard Business School Teaching Note 290-042, May 1990. (Revised February 1993.) View Details
  16. Minebea Co. Ltd.

    Keywords: Electronics Industry;

    Citation:

    Kester, W. Carl. "Minebea Co. Ltd." Harvard Business School Case 287-022, August 1986. (Revised November 1991.) View Details
  17. Minebea Co. Ltd., Teaching Note

    Citation:

    Kester, W. Carl. "Minebea Co. Ltd., Teaching Note." Harvard Business School Teaching Note 290-041, May 1990. (Revised February 1993.) View Details
  18. Montedison, S.p.A.--1983

    Citation:

    Kester, W. Carl. "Montedison, S.p.A.--1983." Harvard Business School Case 286-032, October 1985. (Revised November 1992.) View Details
  19. Montedison, S.p.A.--1983, Teaching Note

    Citation:

    Kester, W. Carl. "Montedison, S.p.A.--1983, Teaching Note." Harvard Business School Teaching Note 290-040, June 1990. (Revised March 1993.) View Details

HBS Course Materials / Risk Management

  1. FX Risk Hedging at EADS

    Keywords: risk management; derivatives; foreign exchange; options; forward contract; aerospace; Europe; Risk Management; Futures and Commodity Futures; Europe;

    Citation:

    Kester, W. Carl. "FX Risk Hedging at EADS." Harvard Business School Spreadsheet Supplement 213-720, March 2013. View Details
  2. FX Risk Hedging at EADS

    In 2008, EADS, the European aerospace group that owns Airbus, was faced with the decision of how best to hedge a large and growing mismatch between its dollar revenues and its euro manufacturing costs. Specifically, the company needed to decide if it would continue hedging primarily with forward contracts, but in much higher volumes and at increasingly unfavorable rates, or to break with past practice and begin using foreign exchange option contracts. The decision would have consequences for EADS' profitability, cash flow, and its ability to fund strategic investment programs crucial to its ability to remain competitive with Boeing. Students must address questions concerning the proper way to measure foreign exchange exposures, the objectives of a rational risk management policy and program for a company like EADS competing in a duopoly with Boeing, the differences between hedging with FX options versus FX futures, counterparty risk, and hedge accounting, among other considerations.

    Keywords: risk management; derivatives; foreign exchange; options; forward contract; aerospace; Europe; Risk Management; Futures and Commodity Futures; Aerospace Industry; Europe;

    Citation:

    Kester, W. Carl, Vincent Dessain, and Karol Misztal. "FX Risk Hedging at EADS." Harvard Business School Case 213-080, January 2013. View Details
  3. Maxum Petroleum, Inc.

    Keywords: Energy Industry;

    Citation:

    Kester, W. Carl. "Maxum Petroleum, Inc." Harvard Business School Case 212-077, February 2012. (Revised February 2013.) View Details
  4. Maxum Petroleum, Inc.

    Maxum seeks an oil-price hedging strategy that yields substantial cash during oil price spikes, is affordable under ordinary circumstances, and is easily managed. It is striving to avoid a repeat of the challenging situation encountered in 2008 when spiking oil prices resulted in substantial working capital buildup, heavy draw down in its bank credit lines, and missed investment opportunities. Students must differentiate among the income statement, balance sheet and cash flow effects of Maxum's exposure to oil prices, and understand the payoff profiles of various option hedges such as call writing and buying, costless collars, and "ratio writing" (unequal combinations of puts and calls). They are also challenged to design a hedging program that supports Maxum's growth and investment strategy by yielding substantial cash primarily during extreme oil price increases; imposes low or no costs otherwise; and does not require active, judgmental trading decisions to execute.

    Keywords: Hedging; options; commodities; Credit Derivatives and Swaps; Risk Management; Futures and Commodity Futures; Financial Strategy; Volatility;

    Citation:

    Kester, W. Carl. "Maxum Petroleum, Inc." Harvard Business School Spreadsheet Supplement 213-714, January 2013. (Revised February 2013.) View Details
  5. Introduction to Derivative Instruments

    Provides an elementary introduction to three major classes of derivative instruments: options, forwards and futures, and swaps.

    Keywords: Financial Instruments;

    Citation:

    Kester, W. Carl, and Kendall Backstrand. "Introduction to Derivative Instruments." Harvard Business School Background Note 295-141, April 1995. (Revised March 1997.) View Details
  6. Tiffany & Co.--1993

    The restructuring of Tiffany's retailing agreement with Mitsukoshi Ltd. in 1993 exposed Tiffany to substantial yen/dollar exchange rate volatility that it had not previously faced. This new exposure requires Tiffany to establish risk management policies and practices. Management must determine whether to hedge, what the objective of hedging ought to be, how much exposure to cover, and what instruments to use. Teaching Objective: To introduce students to the problems of risk management in a relatively uncomplicated administrative situation.

    Keywords: Restructuring; Currency Exchange Rate; Management Practices and Processes; Risk Management; Agreements and Arrangements; Situation or Environment;

    Citation:

    Kester, W. Carl, and Kendall Backstrand. "Tiffany & Co.--1993." Harvard Business School Case 295-047, December 1994. (Revised June 1995.) View Details
  7. Tiffany & Co.--1993, Teaching Note

    Teaching Note for (9-295-047).

    Citation:

    Kester, W. Carl. "Tiffany & Co.--1993, Teaching Note." Harvard Business School Teaching Note 298-014, July 1997. View Details
  8. Phelps Dodge Corporation

    A prolonged decline in copper prices prompts Phelps Dodge, one of the world's largest independent copper companies, to consider corporate diversification as a means of protecting itself from copper price volatility.

    Keywords: Diversification; Price; Volatility; Risk Management; Mining Industry; Arizona; United States;

    Citation:

    Kester, W. Carl, and Kendall Backstrand. "Phelps Dodge Corporation." Harvard Business School Case 295-132, April 1995. View Details
  9. Phelps Dodge Corporation (TN)

    Teaching Note for (9-295-132).

    Keywords: Mining Industry; Arizona; United States;

    Citation:

    Kester, W. Carl. "Phelps Dodge Corporation (TN)." Harvard Business School Teaching Note 298-018, July 1997. View Details
  10. Ocean Drilling, Inc. (TN)

    Teaching Note for (9-282-050).

    Citation:

    Kester, W. Carl. "Ocean Drilling, Inc. (TN)." Harvard Business School Teaching Note 293-007, April 1993. View Details
  11. Keller Fund's Option Investment Strategies, The

    A closed-end mutual fund's decision to study option trading provides an opportunity to study the profit profile and pricing of multiple option investment strategies (e.g., buy a call, buy a put, write a call, buy stock-write call, etc.). This case is designed to provide students with an introduction to option pricing.

    Keywords: Investment Funds; Stock Options; Profit; Price; Strategy; Financial Services Industry;

    Citation:

    Kester, W. Carl. "Keller Fund's Option Investment Strategies, The." Harvard Business School Case 295-096, January 1995. View Details
  12. Keller Fund's Option Investment Strategies, The (TN)

    Teaching Note for (9-295-096).

    Keywords: Financial Services Industry;

    Citation:

    Kester, W. Carl. "Keller Fund's Option Investment Strategies, The (TN)." Harvard Business School Teaching Note 298-013, July 1997. View Details
  13. Hintz-Kessels-Kohl A.G. (TN)

    Teaching Note for (9-284-019).

    Keywords: Costa Rica;

    Citation:

    Kester, W. Carl. "Hintz-Kessels-Kohl A.G. (TN)." Harvard Business School Teaching Note 293-002, March 1993. View Details
  14. Note on Foreign Currency Swaps

    Provides descriptive background about the development of an international market for currency swaps and, by means of a detailed example, instructs readers in the determination of swap flows and all-in costs of financing using market swap rates. A rewritten version of an earlier note.

    Keywords: Currency;

    Citation:

    Kester, W. Carl. "Note on Foreign Currency Swaps." Harvard Business School Background Note 292-043, November 1991. (Revised April 2002.) View Details
  15. Note on Foreign Currency Swaps (TN)

    Teaching Note for (9-292-043).

    Citation:

    Kester, W. Carl. "Note on Foreign Currency Swaps (TN)." Harvard Business School Teaching Note 293-006, March 1993. View Details
  16. Walt Disney Co.'s Yen Financing

    Walt Disney is considering hedging future yen inflows from Disney Tokyo. It is evaluating techniques using FX Forwards, swaps, and Yen term borrowings. Goldman Sachs presents a rather unusual but potentially attractive solution: Disney could issue ECU Eurobonds and swap into a Yen liability. The case explains how this alternative would work and suggests to the students ways to evaluate the hedging choices.

    Keywords: Borrowing and Debt; Currency; Bonds; Valuation; Tokyo;

    Citation:

    Kester, W. Carl, and William B. Allen. "Walt Disney Co.'s Yen Financing." Harvard Business School Case 287-058, January 1987. (Revised September 1991.) View Details
  17. Walt Disney Co.'s Yen Financing, Teaching Note

    Teaching Note for (9-287-058).

    Keywords: Finance; Motion Pictures and Video Industry;

    Citation:

    Kester, W. Carl. "Walt Disney Co.'s Yen Financing, Teaching Note." Harvard Business School Teaching Note 290-009, October 1989. (Revised May 1996.) View Details
  18. Gaz de France

    The treasurer of Gaz de France is an aggressive, proactive manager of his company's liability structure, running one of the largest swap books of any non-financial corporation in the world. Currency futures, interbank forwards, and currency options are also frequently used to control the company's multi-currency liability structure. This case prompts students to explore the reasons and ramifications of such aggressive liability management, with particular attention being paid to the administrative challenges created by such a large swap position. An important decision has to be made regarding the management of the swap book in the face of the depreciating dollar, the decline of the franc against the German mark, and a possible realignment of the European Currency Unit. This is a comprehensive case involving swaps, debt policy, and foreign exchange exposure that is best taught after students have been introduced to these topics.

    Keywords: Decisions; Borrowing and Debt; Currency Exchange Rate; Credit Derivatives and Swaps; Policy; Management; Organizational Structure; Energy Industry; Europe;

    Citation:

    Kester, W. Carl. "Gaz de France." Harvard Business School Case 288-030, April 1988. (Revised May 1992.) View Details
  19. Gaz de France, Teaching Note

    Teaching Note for (9-288-030).

    Keywords: France;

    Citation:

    Kester, W. Carl. "Gaz de France, Teaching Note." Harvard Business School Teaching Note 290-023, January 1990. (Revised January 1993.) View Details
  20. Note on Transaction and Translation Exposure

    Describes the transaction and translation exposures that companies doing business internationally face when foreign exchange rates change. Also discusses how to measure and cover both types of exposure. Covering techniques are demonstrated using examples of forward cover, money market hedges, and options market hedges. Other covering devices, such as swaps and leads and lags, are also presented. Explains how these exposures relate to each other and what can be done to minimize overall foreign exchange risk.

    Keywords: Currency Exchange Rate; International Finance;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "Note on Transaction and Translation Exposure." Harvard Business School Background Note 288-017, September 1987. (Revised November 1992.) View Details
  21. Note on Transaction and Translation Exposure, Teaching Note

    Teaching Note for (9-288-017).

    Keywords: Finance; Theory;

    Citation:

    Kester, W. Carl. "Note on Transaction and Translation Exposure, Teaching Note." Harvard Business School Teaching Note 290-027, December 1989. (Revised January 1993.) View Details
  22. General Cinema Corp.--1987

    Keywords: Motion Pictures and Video Industry;

    Citation:

    Kester, W. Carl, and Richard P. Melnick. "General Cinema Corp.--1987." Harvard Business School Case 288-061, June 1988. (Revised September 1991.) View Details
  23. General Cinema Corp.--1987, Teaching Note

    Keywords: Motion Pictures and Video Industry;

    Citation:

    Kester, W. Carl. "General Cinema Corp.--1987, Teaching Note." Harvard Business School Teaching Note 290-031, January 1990. (Revised January 1993.) View Details
  24. Universal Circuits, Inc. (TN)

    Teaching Note for (9-286-006).

    Keywords: Electronics Industry; United States;

    Citation:

    Kester, W. Carl. "Universal Circuits, Inc. (TN)." Harvard Business School Teaching Note 293-008, March 1993. View Details
  25. Harley-Davidson, Inc.--1987

    After an LBO and near bankruptcy in the early 1980s, Harley-Davidson makes an astonishing recovery, going public in 1986. Its listing on the New York Stock Exchange in 1987 provides the occasion of an equity analyst to publish a research report in which she must issue a buy, sell, or hold recommendation for Harley's stock. Complicating her analysis is the fact that Harley still faces vigorous Japanese competition and, therefore, has a significant operating exposure to the yen/dollar exchange rate. Stimulates discussion about operating exposure to real exchange rate changes.

    Keywords: Leveraged Buyouts; Currency Exchange Rate; Reports; Crisis Management; Going Public; Research; Competition; Auto Industry; Japan; New York (city, NY);

    Citation:

    Kester, W. Carl, and Julia Morley. "Harley-Davidson, Inc.--1987." Harvard Business School Case 292-082, March 1992. (Revised December 1992.) View Details

HBS Course Materials / Capital Structure and Financing

  1. Hill Country Snack Foods Co.

    Hill Country Snack Foods, located in Austin, Texas, manufactures, markets, and distributes snack foods and frozen treats. The CEO is passionate about maximizing shareholder value and believes in keeping tight control over costs and operating the business as efficiently as possible. The company invests in additional capacity and new products only when attractive, low-risk opportunities are identified and can be funded internally. The firm's culture of risk aversion extends to financing decisions with a clear preference for equity finance over debt finance. The CEO believes a strong balance sheet with large cash balances provides the company with maximum safety and flexibility. Sales growth has been steady but unspectacular. As the CEO approaches retirement, investors and analysts speculate that the company will change to a more aggressive capital structure. Students must analyze the firm's current capital structure, explore three alternatives using debt finance, and determine the optimal debt-to-capital ratio.

    Keywords: United States; financial strategy; capital structure; risk management; debt management; retail trade; food; Risk Management; Food; Capital Structure; Corporate Finance; Retail Industry; Food and Beverage Industry; Texas;

    Citation:

    Kester, W. Carl, and Craig Stephenson. "Hill Country Snack Foods Co." Harvard Business School Brief Case 913-517, October 2012. View Details
  2. Hill Country Snack Foods Co. (Brief Case)

    Keywords: United States; financial strategy; capital structure; risk management; debt management; retail trade; food;

    Citation:

    Kester, W. Carl, and Craig Stephenson. "Hill Country Snack Foods Co. (Brief Case)." Harvard Business School Teaching Note 913-518, October 2012. View Details
  3. Hill Country Snack Foods Co., Spreadsheet for Students (Brief Case) (CW)

    Keywords: United States; financial strategy; capital structure; risk management; debt management; retail trade; food;

    Citation:

    Kester, W. Carl, and Craig Stephenson. "Hill Country Snack Foods Co., Spreadsheet for Students (Brief Case) (CW)." Harvard Business School Spreadsheet Supplement 913-519, October 2012. View Details
  4. Hill Country Snack Foods Co., Spreadsheet for Instructors (Brief Case) (CW)

    Citation:

    Kester, W. Carl, and Craig Stephenson. "Hill Country Snack Foods Co., Spreadsheet for Instructors (Brief Case) (CW)." Harvard Business School Spreadsheet Supplement 913-520, October 2012. View Details
  5. Winfield Refuse Management, Inc.: Raising Debt vs. Equity

    A small, publicly traded company specializing in non-hazardous waste management considers a major acquisition in the Midwestern U.S. The acquisition can provide entry into the region, help the firm compete in a competitive industry, and improve its cost position. The company has a long-standing policy to avoid long term debt and until now has made a series of small acquisitions using only internal financing. The chief financial officer wants the board of directors to reconsider the policy and suggests funding the acquisition through a bond issue. Several company directors disagree and prefer that the firm issue common stock. Students must analyze the costs of issuing either a bond or common stock before making a final recommendation for financing the acquisition.

    Keywords: United States; Acquisitions; capital structure; Equity Capital; debt management; Expansion; leveraged buyouts; financial analysis; Administrative/Support/Waste Management/Remediation Services; Equity; Borrowing and Debt; Service Industry;

    Citation:

    Kester, W. Carl, and Sunru Yong. "Winfield Refuse Management, Inc.: Raising Debt vs. Equity." Harvard Business School Brief Case 913-530, October 2012. View Details
  6. Winfield Refuse Management, Inc.: Raising Debt vs. Equity (Brief Case) (TN)

    Keywords: United States; Acquisitions; capital structure; Equity Capital; debt management; Expansion; leveraged buyouts; financial analysis; Administrative/Support/Waste Management/Remediation Services;

    Citation:

    Kester, W. Carl, and Sunru Yong. "Winfield Refuse Management, Inc.: Raising Debt vs. Equity (Brief Case) (TN)." Harvard Business School Teaching Note 913-531, October 2012. View Details
  7. Winfield Refuse Management, Inc.: Raising Debt vs. Equity, Spreadsheet for Students (Brief Case) (CW)

    Keywords: United States; Acquisitions; capital structure; Equity Capital; debt management; Expansion; leveraged buyouts; financial analysis; Administrative/Support/Waste Management/Remediation Services;

    Citation:

    Kester, W. Carl, and Sunru Yong. "Winfield Refuse Management, Inc.: Raising Debt vs. Equity, Spreadsheet for Students (Brief Case) (CW)." Harvard Business School Spreadsheet Supplement 913-532, October 2012. View Details
  8. Continental Carriers, Inc.

    A U.S. trucking company is considering using debt for the first time to acquire another company. The directors of the company are divided in their opinion of the likely impact of leverage on Continental Carriers' performance. Their differences must be reconciled and a decision reached about whether to issue new debt or equity to fund the acquisition. Students are introduced to the impact of leverage on performance variables such as profits, growth, earnings per share, and stock price. A rewritten version of an earlier case.

    Keywords: Debt Securities; Financing and Loans; Acquisition; Borrowing and Debt; Equity; Transportation Industry; United States;

    Citation:

    Kester, W. Carl. "Continental Carriers, Inc." Harvard Business School Case 291-080, June 1991. View Details
  9. Continental Carriers, Inc. (TN)

    Teaching Note for (9-291-080).

    Keywords: Transportation Industry; United States;

    Citation:

    Kester, W. Carl. "Continental Carriers, Inc. (TN)." Harvard Business School Teaching Note 292-050, January 1992. View Details
  10. Stone Container Corporation (A)

    In early 1993, Stone Container was heavily burdened by debt following a series of highly leveraged acquisitions. A prolonged depression in paper prices necessitated the development of a comprehensive financial plan to relieve the financial pressures on Stone. Among the alternatives to be considered are straight debt, convertible debt, and equity.

    Keywords: Leveraged Buyouts; Borrowing and Debt; Capital Structure; Equity; Price; Strategic Planning;

    Citation:

    Kester, W. Carl, and Kirk Goldman. "Stone Container Corporation (A)." Harvard Business School Case 297-047, February 1997. (Revised April 2013.) View Details
  11. Stone Container Corporation (B)

    Supplements the (A) case.

    Citation:

    Kester, W. Carl, and Kirk A. Goldman. "Stone Container Corporation (B)." Harvard Business School Case 204-096, November 2003. (Revised March 2006.) View Details
  12. Stone Container Corporation (A) (TN)

    Teaching Note for (9-297-047).

    Citation:

    Kester, W. Carl. "Stone Container Corporation (A) (TN)." Harvard Business School Teaching Note 203-039, January 2003. (Revised September 2005.) View Details
  13. Stone Container Corporation (A) (CW)

    Citation:

    Kester, W. Carl. "Stone Container Corporation (A) (CW)." Harvard Business School Spreadsheet Supplement 212-708, March 2012. (Revised March 2013.) View Details
  14. Hospital Corp. of America (A)

    HCAs ratio of debt to total capital is approaching 70%, jeopardizing its single-A bond rating. Students must determine an appropriate target debt ratio for HCA in light of its growth objectives, its acquisition strategy and its changing regulatory environment.

    Keywords: Situation or Environment; Capital Structure; Health Care and Treatment; Borrowing and Debt; Health Industry; Tennessee;

    Citation:

    Kester, W. Carl. "Hospital Corp. of America (A)." Harvard Business School Case 283-053, January 1983. (Revised February 1988.) View Details
  15. Hospital Corp. of America (A), Teaching Note

    Teaching Note for (9-283-053).

    Keywords: Health Industry;

    Citation:

    Kester, W. Carl, and David W. Mullins Jr. "Hospital Corp. of America (A), Teaching Note." Harvard Business School Teaching Note 289-010, November 1988. (Revised January 1992.) View Details
  16. Hospital Corp. of America (B)

    Focuses on HCAs financing options for reaching its target capital structure. The options include new equity conversion of convertible debentures, a debt-for-equity swap, the sale of assets, and fixed-rate debt. Students must address the problem of market timing and signaling in their choice of financing vehicles.

    Keywords: Assets; Capital Structure; Cash Flow; Equity; Debt Securities; Credit Derivatives and Swaps; Health Industry; United States;

    Citation:

    Kester, W. Carl. "Hospital Corp. of America (B)." Harvard Business School Case 283-054, January 1983. (Revised February 1988.) View Details
  17. Hospital Corp. of America (B), Teaching Note

    Teaching Note for (9-283-054).

    Keywords: Health Industry; United States;

    Citation:

    Kester, W. Carl. "Hospital Corp. of America (B), Teaching Note." Harvard Business School Teaching Note 289-011, November 1988. View Details
  18. PHH Group, Inc.

    Citation:

    Kester, W. Carl. "PHH Group, Inc." Harvard Business School Case 283-046, January 1983. (Revised June 1983.) View Details
  19. PHH Group, Inc., Teaching Note

    Citation:

    Kester, W. Carl. "PHH Group, Inc., Teaching Note." Harvard Business School Teaching Note 289-009, November 1988. View Details
  20. Dome Petroleum Ltd.

    Keywords: Energy Industry;

    Citation:

    Kester, W. Carl. "Dome Petroleum Ltd." Harvard Business School Case 285-002, July 1984. (Revised February 1985.) View Details
  21. Dome Petroleum Ltd., Teaching Note

    Keywords: Energy Industry;

    Citation:

    Kester, W. Carl. "Dome Petroleum Ltd., Teaching Note." Harvard Business School Teaching Note 289-008, November 1988. View Details

HBS Course Materials / Valuation Capital Budgeting and Cost of Capital

  1. Dixon Corporation: The Collinsville Plant

    Dixon Corp.faces the task of valuing a plant and an associated project that it is considering buying. The revisions are designed to enable the application of adjusted present value technique for valuation. A rewritten version of an earlier case.

    Keywords: Factories, Labs, and Plants; Valuation; Projects; Forecasting and Prediction; Acquisition; Entertainment and Recreation Industry; Technology Industry;

    Citation:

    Kester, W. Carl. "Dixon Corporation: The Collinsville Plant." Harvard Business School Case 298-165, June 1998. (Revised June 1999.) View Details
  2. Valuing Capital Investment Projects

    A collection of problems that introduces students to the application of discounted cash flow analysis in the evaluation of capital budgeting problems.

    Keywords: Budgets and Budgeting; Capital; Cash Flow; Investment; Valuation;

    Citation:

    Kester, W. Carl. "Valuing Capital Investment Projects." Harvard Business School Case 298-092, December 1997. (Revised December 1998.) View Details
  3. Valuing Capital Investment Projects (TN)

    Teaching Note to (9-298-092).

    Citation:

    Kester, W. Carl. "Valuing Capital Investment Projects (TN)." Harvard Business School Teaching Note 204-152, May 2004. View Details
  4. Netscape's Initial Public Offering

    In August 1995, Netscape's board of directors was confronted with a decision about what price to offer the company's shares in its initial public offering (IPO). Preliminary demand for shares was high, but the company had not generated any positive earnings at the time of the offering.

    Keywords: Initial Public Offering; Technology; Problems and Challenges; Valuation; Governing and Advisory Boards; Information Technology Industry;

    Citation:

    Kester, W. Carl, and Kendall Backstrand. "Netscape's Initial Public Offering." Harvard Business School Case 296-088, April 1996. (Revised May 1997.) View Details
  5. Netscape's Initial Public Offering (TN)

    Teaching Note for (9-296-088).

    Citation:

    Kester, W. Carl. "Netscape's Initial Public Offering (TN)." Harvard Business School Teaching Note 298-020, July 1997. View Details
  6. Lex Service PLC-- Cost of Capital

    Lex Service company has grown into a large multidivisional company with a substantial capital budget. In 1993, the board was reviewing its capital budgeting procedures. Specifically, it sought to determine the company's cost of capital and whether it should use different hurdle rates for different divisions.

    Keywords: Risk and Uncertainty; Cost of Capital; Equity; Capital Budgeting;

    Citation:

    Kester, W. Carl, and Kendall Backstrand. "Lex Service PLC-- Cost of Capital." Harvard Business School Case 296-003, April 1996. (Revised March 1998.) View Details
  7. Lex Service PLC--Cost of Capital (TN)

    Teaching Note to (9-296-003).

    Keywords: Capital;

    Citation:

    Kester, W. Carl. "Lex Service PLC--Cost of Capital (TN)." Harvard Business School Teaching Note 204-158, May 2004. (Revised September 2005.) View Details

HBS Course Materials / General Corporate Finance

  1. Polar Sports, Inc.

    Polar Sports, Inc. is a fashion skiwear manufacturing company in Littleton, Colorado. The company has a unique design for skiwear using a special synthetic material that improves insulation and durability. The ski apparel industry is highly competitive and the best way for companies to gain market share is by developing new fabrics and using innovative patterns. The firm generates over 80% of sales between September and January and relies on seasonal production to respond promptly to customer orders. During those months, the plant must rapidly increase production by hiring and training additional workers, often paying them overtime. The vice president of operations is concerned about the costs associated with seasonal production and presents a proposal to switch to level production. The change can reduce costs and improve efficiency but can also affect other aspects of company finance. Students must analyze potential cost savings and understand the financial risks involved before making a final recommendation. This case can be used in first-year MBA-level courses in finance or in advanced undergraduate finance courses.

    Keywords: Production; Decision Choices and Conditions; Competitive Strategy; Corporate Finance; Manufacturing Industry; Apparel and Accessories Industry; Sports Industry; Colorado;

    Citation:

    Kester, W. Carl, and Wei Wang. "Polar Sports, Inc." Harvard Business School Brief Case 913-513, August 2012. View Details
  2. Polar Sports, Inc. (Brief Case)

    Citation:

    Kester, W. Carl, and Wei Wang. "Polar Sports, Inc. (Brief Case)." Harvard Business School Teaching Note 913-514, August 2012. View Details
  3. Polar Sports, Inc., Spreadsheet for Students (Brief Case)

    Citation:

    Kester, W. Carl, and Wei Wang. "Polar Sports, Inc., Spreadsheet for Students (Brief Case)." Harvard Business School Spreadsheet Supplement 913-515, August 2012. View Details
  4. Polar Sports, Inc., Spreadsheet for Instructors (Brief Case)

    Citation:

    Kester, W. Carl, and Wei Wang. "Polar Sports, Inc., Spreadsheet for Instructors (Brief Case)." Harvard Business School Spreadsheet Supplement 913-516, August 2012. View Details
  5. Fixed Income Valuation

    A collection of problems that introduces students to the use of discounted cash flow analysis in the valuation of fixed income securities. Students are required to estimate bond prices and yields to maturity, among other items.

    Keywords: Valuation; Cash Flow; Bonds;

    Citation:

    Kester, W. Carl. "Fixed Income Valuation." Harvard Business School Case 298-080, December 1997. View Details
  6. Fixed Income Valuation (TN)

    Teaching Note for (9-298-080).

    Keywords: Consumer Products Industry;

    Citation:

    Kester, W. Carl. "Fixed Income Valuation (TN)." Harvard Business School Teaching Note 201-020, August 2000. View Details
  7. Allen Distribution Company (TN)

    Teaching Note for (9-201-016).

    Keywords: Credit; Planning; Risk and Uncertainty; Service Industry;

    Citation:

    Kester, W. Carl. "Allen Distribution Company (TN)." Harvard Business School Teaching Note 292-032, January 1992. View Details
  8. Systems Engineering Laboratories, Inc., Teaching Note

    Teaching Note for (9-279-074).

    Citation:

    Kester, W. Carl. "Systems Engineering Laboratories, Inc., Teaching Note." Harvard Business School Teaching Note 298-024, July 1997. (Revised April 1998.) View Details
  9. Jupiter Management Company, Teaching Note

    Teaching Note for (9-292-107).

    Keywords: Investment Funds; Borrowing and Debt; Financial Services Industry;

    Citation:

    Kester, W. Carl. "Jupiter Management Company, Teaching Note." Harvard Business School Teaching Note 298-023, July 1997. View Details
  10. U.S. Bank of Washington (TN)

    Teaching Note for (9-292-057).

    Keywords: Financing and Loans; Cash Flow; Financial Statements; Business Subsidiaries; Commercial Banking; Managerial Roles; Banking Industry; Food and Beverage Industry; United States;

    Citation:

    Kester, W. Carl. "U.S. Bank of Washington (TN)." Harvard Business School Teaching Note 298-021, July 1997. View Details
  11. Tire City, Inc.

    A small, rapidly growing retail distributor of automotive tires must present a set of forecasted financial statements to a bank in order to obtain a five-year loan. Expected growth rates given in the case and historical financial ratios derived from recent financial statements are used to forecast pro-forma income statements and balance sheets for the next two years.

    Keywords: Financial Statements; Forecasting and Prediction; Financing and Loans; Price; Supply Chain; Distribution Industry; Retail Industry;

    Citation:

    Kester, W. Carl. "Tire City, Inc." Harvard Business School Case 297-091, February 1997. (Revised May 1998.) View Details
  12. Tire City, Inc. (TN)

    Teaching Note to (9-297-091).

    Keywords: Distribution Industry; Retail Industry;

    Citation:

    Kester, W. Carl. "Tire City, Inc. (TN)." Harvard Business School Teaching Note 204-149, March 2004. View Details
  13. SureCut Shears, Inc.

    A bank loan officer must determine whether to waive convenants and extend terms on a line of credit granted to SureCut Shears. At issue is whether the inability of SureCut to pay down its line of credit is due to a temporary cyclical downturn or other long-term financial problems.

    Keywords: Business Cycles; Finance; Performance; Problems and Challenges;

    Citation:

    Kester, W. Carl. "SureCut Shears, Inc." Harvard Business School Case 297-013, March 1997. (Revised January 1999.) View Details
  14. SureCut Shears, Inc. (TN)

    Teaching Note for (9-297-013).

    Keywords: Manufacturing Industry;

    Citation:

    Kester, W. Carl. "SureCut Shears, Inc. (TN)." Harvard Business School Teaching Note 297-079, May 1997. (Revised October 1998.) View Details
  15. Nova Chemical Corporation--1989

    Keywords: Chemical Industry;

    Citation:

    Kester, W. Carl. "Nova Chemical Corporation--1989." Harvard Business School Case 295-154, May 1995. (Revised July 1995.) View Details
  16. Toy World, Inc.

    A shift from seasonal to level production of toys will change the seasonal cycle of Toy World's working capital needs and necessitate new bank credit arrangements. A rewritten version of an earlier case.

    Keywords: Working Capital; Business Cycles; Cash Flow; Forecasting and Prediction; Investment Funds; Financial Statements;

    Citation:

    Kester, W. Carl. "Toy World, Inc." Harvard Business School Case 295-073, November 1994. (Revised February 1996.) View Details
  17. Toy World, Inc., Teaching Note

    Teaching Note for (9-295-073).

    Keywords: Entertainment and Recreation Industry;

    Citation:

    Kester, W. Carl. "Toy World, Inc., Teaching Note." Harvard Business School Teaching Note 297-118, May 1997. View Details
  18. Nelson Paper Products, Inc.

    A comprehensive review case that entails both investment and financing decisions. Students must value an acquisitions opportunity and determine how Nelson Paper ought to finance both the acquisition and its regular capital expenditures program.

    Keywords: Cash Flow; Financing and Loans; Investment; Acquisition; Financial Strategy;

    Citation:

    Kester, W. Carl. "Nelson Paper Products, Inc." Harvard Business School Case 294-129, May 1994. (Revised May 1997.) View Details
  19. Kentucky Steel Corp.

    Keywords: Steel Industry;

    Citation:

    Kester, W. Carl. "Kentucky Steel Corp." Harvard Business School Case 294-094, February 1994. View Details
  20. Super Project, The (TN)

    Teaching Note for (9-112-034).

    Keywords: Management Analysis, Tools, and Techniques; Capital; Investment; Decisions;

    Citation:

    Kester, W. Carl. "Super Project, The (TN)." Harvard Business School Teaching Note 292-033, January 1992. View Details
  21. Union Tank Car Co.

    Citation:

    Kester, W. Carl. "Union Tank Car Co." Harvard Business School Case 284-077, April 1984. (Revised May 1986.) View Details
  22. Union Tank Car Co., Teaching Note

    Keywords: Rail Industry;

    Citation:

    Kester, W. Carl. "Union Tank Car Co., Teaching Note." Harvard Business School Teaching Note 289-006, November 1988. (Revised January 1992.) View Details
  23. E.I. du Pont de Nemours & Co.: Titanium Dioxide

    Disequilibrium in the $350 million TiO2 market has prompted Du Pont's Pigments Department to develop two strategies for competing in this market in the future. The growth strategy has a smaller internal rate of return than the alternative strategy due to large capital outlays in early years and positive cash flows arising only in later years. However, it is the more valuable project on a net present value basis for all discount rates less than 21%. Students are faced with the task of converting strategic plans and objectives into free cash flow projections and determining a breakeven discount rate between these mutually exclusive projects. A decision about which strategy to pursue must then be made. Rewritten version of an earlier case by the same author.

    Keywords: Forecasting and Prediction; Cash Flow; Investment Return; Growth and Development Strategy; Strategic Planning; Projects; Chemical Industry;

    Citation:

    Kester, W. Carl, Robert R. Glauber, David W. Mullins Jr., and Stacy S. Dick. "E.I. du Pont de Nemours & Co.: Titanium Dioxide." Harvard Business School Case 284-066, February 1984. (Revised February 1986.) View Details
  24. E.I. du Pont de Nemours & Co.: Titanium Dioxide, Teaching Note

    Teaching Note for (9-284-066).

    Keywords: Product; Chemical Industry;

    Citation:

    Kester, W. Carl. "E.I. du Pont de Nemours & Co.: Titanium Dioxide, Teaching Note." Harvard Business School Teaching Note 289-005, November 1988. (Revised January 1992.) View Details
  25. Napco Industries, Inc. (A)

    Citation:

    Kester, W. Carl, K. Paul Asquith, and David W. Mullins Jr. "Napco Industries, Inc. (A)." Harvard Business School Case 283-040, January 1983. (Revised September 1986.) View Details
  26. Napco Industries, Inc. (B)

    Citation:

    Kester, W. Carl, K. Paul Asquith, and David W. Mullins Jr. "Napco Industries, Inc. (B)." Harvard Business School Case 283-041, January 1983. (Revised November 1984.) View Details
  27. LTV-Wilson (TN)

    Citation:

    Kester, W. Carl. "LTV-Wilson (TN)." Harvard Business School Teaching Note 289-007, July 1988. View Details
  28. Disposable Diaper Industry in 1974, Software Case

    Keywords: Consumer Products Industry;

    Citation:

    Kester, W. Carl. "Disposable Diaper Industry in 1974, Software Case." Harvard Business School Case 386-141, May 1986. View Details