Investment Opportunities as Real Options: Getting Started on the Numbers

Timothy A. Luehrman

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Article | Harvard Business Review | July – August 1998

Investment Opportunities as Real Options: Getting Started on the Numbers

by Timothy A. Luehrman

Keywords: Investment; Opportunities; Finance;

Format: Print

17 pages

Find at Harvard

Citation:

Luehrman, Timothy A. "Investment Opportunities as Real Options: Getting Started on the Numbers." Harvard Business Review 76, no. 4 (July–August 1998): 51–67.

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Case | HBS Case Collection | January 2011 (Revised December 2017)

Tombstones

Timothy A. Luehrman and David Lane

This case consists primarily of excerpts from term sheets and prospectuses for six securities offerings made by US companies during 2009-2010, just after the financial crisis and recession of 2008-09. There are three issues of senior unsecured notes, one floating rate note, one equity offering, and one convertible note. The issuers are Microsoft, Coca Cola Enterprises, Norfolk Southern, IBM, Ford Motor, and Cephalon.

Keywords: Financial Crisis; Equity; Debt Securities; Bonds; Motivation and Incentives; United States;

Citation:
Luehrman, Timothy A., and David Lane. "Tombstones." Harvard Business School Case 211-063, January 2011. (Revised December 2017.) View Details

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Teaching Note | HBS Case Collection | January 2013 (Revised October 2014)

Tombstones

This case consists primarily of excerpts from term sheets and prospectuses for six securities offerings made by US companies during 2009-2010, just after the financial crisis and recession of 2008-09. There are three issues of senior unsecured notes, one floating rate note, one equity offering, and one convertible note. The issuers are Microsoft, Coca Cola Enterprises, Norfolk Southern, IBM, Ford Motor, and Cephalon.

Keywords: Debt Securities; Financial Crisis; United States;

Citation:
Luehrman, Timothy A. "Tombstones." Harvard Business School Teaching Note 213-085, January 2013. (Revised October 2014.) View Details

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Teaching Note | HBS Case Collection | September 2012

Stryker Corporation: Capital Budgeting (TN)

Timothy A. Luehrman

This case examines some parts of Stryker Corporation's systems and procedures for approving and authorizing capital spending of many different types, including buildings, machinery, and working capital for existing businesses, as well as transactions with third parties such as acquisitions, joint ventures, and licensing agreements. The case is set in early 2007, nearly two years after significant modifications in these systems and procedures. Stryker has compiled a remarkable track record of consistently high growth in profitability over more than 20 years. The modifications to its capital budgeting procedures are partly intended to support the company's efforts to continue this success.

Keywords: capital budgeting; capital expenditures-equipment; capital expenditures-machinery; valuation; internal rate of return; discounted cash flows; net present value; Cost of Capital; Valuation; Cash Flow; System; Organizational Culture; Policy; Business Processes; Capital Budgeting;

Citation:
Luehrman, Timothy A. "Stryker Corporation: Capital Budgeting (TN)." Harvard Business School Teaching Note 213-039, September 2012. View Details

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Investment Opportunities as Real Options: Getting Started on the Numbers

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