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Harris, Robert S.

An Introduction to Project Finance: The Partitioning of Cash Flow

Harris, Robert S. ; Schill, Michael J.

F-2106 | Published May 27, 2025 | 5 pages Technical Note

Collection: Darden School of Business

A standard approach to business valuation is to value the total cash flows that the business is expected to provide to all investors, but when the implications of financing decisions take center stage... Read More

Deutsche Bank: Restructure, Change, and Trust

Harris, Robert S. ; Wicks, Andrew C. ; Yemen, Gerry

F-1962 | Published January 27, 2021 | 13 pages Case

Collection: Darden School of Business

This public-sourced case describes Deutsche Bank and what leaders called its most fundamental transformation in decades to frame a discussion on how the current CEO, Christian Sewing, chooses to resha... Read More

Siemens and Healthineers: Valuing the IPO

Harris, Robert S. ; Holtz, Paul

F-1913 | Published September 13, 2019 | 15 pages Case

Collection: Darden School of Business

This case covers the initial public offering (IPO) of the Siemens AG subsidiary Healthineers. The case offers the opportunity to discuss IPOs and to value the company. In contrast to “Healthineers: A ... Read More

Healthineers: A Strategic IPO

Harris, Robert S. ; Holtz, Paul

F-1881 | Published May 16, 2019 | 15 pages Case

Collection: Darden School of Business

This case covers the initial public offering (IPO) of the Siemens subsidiary Healthineers. The March 2018 offering of the health care technology firm was heavily anticipated on the Frankfurt Stock Exc... Read More

salauno

Harris, Robert S. ; Hern?ndez, Alexis Kretchmar

F-1830 | Published August 06, 2018 | 11 pages Case

Collection: Darden School of Business

This case introduces salauno, a for-profit company founded by two young entrepreneurs, Javier Okhuysen and Carlos Orellana, who wanted to eliminate needless blindness in Mexico. Untreated cataracts an... Read More

Investment Decision and Cash Flows (RUSSIAN)

Harris, Robert S. ; Pringle, John

F-2000 | Published November 08, 2017 | 19 pages Technical Note

Collection: Darden School of Business

This is a Russian translation of the November 1996 version of UVA F-0915. A positive net present value (NPV) is a direct estimate of value creation for shareholders and is an operational way of carryi... Read More

MCI Communications Corp.: Capital Structure Theory (SPANISH)

Chaplinsky, Susan ; Harris, Robert S.

F-1826 | Published January 27, 2016 | 10 pages Case

Collection: Darden School of Business

This is a Spanish translation of the November 5, 2010 version of UVA-1175. This case provides an introductory exercise for estimating the cost of capital (cost of equity, weighted average cost of capi... Read More

Catalyst Health Solutions: A Script for Success?

Harris, Robert S. ; Green, Rick

F-1666 | Published April 20, 2012 | 16 pages Case

Collection: Darden School of Business

In February 2011, David Blair, CEO of Catalyst Health Solutions, was considering another acquisition. Catalyst was already the fastest-growing pharmacy benefit management company in the United States,... Read More

943-945 Warren Road

Conroy, Robert M. ; Harris, Robert S.

F-1638 | Published May 11, 2011 | 6 pages Case

Collection: Darden School of Business

This case, intended for MBA and executive education audiences, investigates whether an LLC should invest in a real estate deal. The materials provide a straightforward opportunity for applying discoun... Read More

Baker Packaging, Inc.

Conroy, Robert M. ; Harris, Robert S. ; Ranjan, Rahul

F-1624 | Published July 15, 2010 | 12 pages Case

Collection: Darden School of Business

Students consider which capital budgeting approach to take when evaluating a packaging manufacturer's joint venture proposal. Suitable for MBA and undergraduate students, the case presents a scenario ... Read More

Using the Equity Residual Approach to Valuation: An Example (Abridged)

Harris, Robert S. ; Conroy, Robert M.

F-1609 | Published November 20, 2009 | 5 pages Technical Note

Collection: Darden School of Business

This note provides an example of the equity residual valuation method to a company. The note can be used to accompany cases on private equity acquisitions or other levered transactions. It provides a ... Read More

Lonestar Graphite

Harris, Robert S. ; Gaede, Jason

F-1595 | Published July 27, 2009 | 19 pages Case

Collection: Darden School of Business

Lonestar Graphite is a potential purchase for a middle-market private equity firm. The private equity firm must decide what to offer for an equity position in Lonestar, based on both the underlying op... Read More

Investure, LLC, and Smith College

Chaplinsky, Susan ; Harris, Robert S. ; Kelly, Dorothy C.

F-1537 | Published September 18, 2007 | 21 pages Case

Collection: Darden School of Business

Alice Handy, an investment professional with 30 years' experience as head of the University of Virginia Investment Management Company, has opened a new asset management firm targeted at midsize endowm... Read More

Interest Rates, Market Pricing, and Compounding

Harris, Robert S. ; Conroy, Robert M.

F-1517 | Published February 05, 2007 | 6 pages Technical Note

Collection: Darden School of Business

Using examples from financial markets, this note examines links among market prices, stated interest rates, and compounding assumptions. The note emphasizes how interest rates are expressions of marke... Read More

Valuing Assets in Financial Markets

Harris, Robert S. ; Conroy, Robert M.

F-1518 | Published February 05, 2007 | 10 pages Technical Note

Collection: Darden School of Business

This technical note provides an overview of techniques used to value assets, including multiples, arbitrage pricing, and discounted cash flow. The note emphasizes the basic nature of valuation approac... Read More

Spot and Forward Interest Rates

Harris, Robert S. ; Conroy, Robert M.

F-1520 | Published February 05, 2007 | 10 pages Technical Note

Collection: Darden School of Business

This note examines how spot and forward interest rates relate to bond prices and to each other. After defining spot and forward rates, the note shows how to estimate spot rates from data on either zer... Read More

Stock Options and Compensation

Harris, Robert S. ; Conroy, Robert M.

F-1521 | Published February 05, 2007 | 5 pages Technical Note

Collection: Darden School of Business

This note is a brief introduction to the logic and practice of using stock options to compensate executives. The Black-Scholes option-pricing model is used to estimate the value of option grants for a... Read More

The Black-Scholes Option-Pricing Model

Harris, Robert S. ; Conroy, Robert M.

F-1522 | Published February 05, 2007 | 10 pages Technical Note

Collection: Darden School of Business

This note discusses the Black-Scholes option-pricing model and then applies the model to call options. The underlying logic of the model is emphasized and illustrated through the use of simple example... Read More

Option Valuation and Dividend Payments

Harris, Robert S. ; Conroy, Robert M.

F-1523 | Published February 05, 2007 | 11 pages Technical Note

Collection: Darden School of Business

This note shows how dividend payments affect option values owing to the effects of dividend payments on share price and resulting investor behavior. In addition to discussing the underlying logic, the... Read More

Required Rate of Return

Eades, Kenneth M. ; Harris, Robert S. ; Bruner, Robert F.

F-1515 | Published November 20, 2006 | 60 pages Multimedia Case

Collection: Darden School of Business

This online tutorial presents an introduction to the principles and techniques for estimating required rates of return. The narrated, step-by-step guide can help the student understand rates of return... Read More

Applying the Capital Asset Pricing Model

Harris, Robert S.

F-1456 | Published October 07, 2004 | 10 pages Technical Note

Collection: Darden School of Business

This note discusses how some of the most financially sophisticated companies and financial advisors estimate the cost of equity capital. It focuses on areas where finance theory is silent or ambiguous... Read More

International Paper: The Aussedat-Rey Acquisition

Harris, Robert S. ; Mead, Mark C.

F-0920 | Published March 08, 2001 | 21 pages Case

Collection: Darden School of Business

International Paper is evaluating entry into European markets via acquisition of Aussedat-Rey, France's second largest paper company. The student is exposed to both strategic and valuation issues as m... Read More

Note on Valuation of Cash Flows in Different Currencies

Harris, Robert S.

F-1080 | Published March 08, 2001 | 10 pages Technical Note

Collection: Darden School of Business

This technical note provides a pedagogical overview of management communication for MBA education. Read More

A Comparison of the Weighted-Average Cost of Capital and Equity-Residual Approaches to Valuation

Harris, Robert S.

F-1301 | Published September 19, 2000 | 5 pages Case

Collection: Darden School of Business

This technical note compares two methods of treating debt usage in discounted-cash-flow valuation of investment projects or companies. The note demonstrates that the approach using weighted-average co... Read More

Option Contracts and Their Valuation

Harris, Robert S. ; Conroy, Robert M.

F-1519 | Published February 01, 2000 | 13 pages Technical Note

Collection: Darden School of Business

This note introduces options (both calls and puts) and their valuation. After covering the history of options and the basic nature of their payoffs, the note provides an intuitive discussion of the de... Read More

Using the Equity Residual Approach to Valuation: An Example

Conroy, Robert M. ; Harris, Robert S.

F-1267 | Published September 30, 1999 | 7 pages Technical Note

Collection: Darden School of Business

This note provides a detailed explanation of how to apply the equity residual valuation method when the debt/equity mix is changing. An example is provided that works through levering betas. The note ... Read More

Signet Banking Corporation

Chaplinsky, Susan ; Harris, Robert S. ; Jordan, Brad ; Redd, Mitchell

F-1221 | Published April 20, 1999 | 22 pages Case

Collection: Darden School of Business

This case investigates the alternatives that Signet Banking Corporation faced in 1995 as it attempted to restructure itself; the market perceived Signet to be undervalued, especially in light of the s... Read More

Hope Enterprises

Harris, Robert S. ; Eades, Kenneth M.

F-1219 | Published June 24, 1998 | 15 pages Case

Collection: Darden School of Business

This case is a relatively straightforward exercise in valuing a potential acquisition target. The case affords students an opportunity to use both discounted cash flow and multiples in their analyses.... Read More

Frank Spence

Harris, Robert S.

F-1206 | Published March 26, 1998 | 12 pages Case

Collection: Darden School of Business

This case features an entrepreneur who must decide whether to sell his small distribution company. The case explores several issues for class discussion: (1) valuation of a private company, (2) assess... Read More

Valuing Companies: An Overview of Analytical Approaches

Harris, Robert S.

F-1187 | Published September 10, 1997 | 5 pages Technical Note

Collection: Darden School of Business

This technical note provides an overview of a valuation network: multiples, options pricing, specific-asset valuation, and present value. The strengths and philosophies of each approach are discussed ... Read More

The Weighted-Average Cost of Capital

Harris, Robert S.

F-1185 | Published June 17, 1997 | 7 pages Technical Note

Collection: Darden School of Business

This note provides a conceptual introduction to the weighted-average cost of capital (WACC). It discusses and provides examples of calculating the WACC and its components. It is useful as a parallel r... Read More

The Effects Of Debt Equity Policy on Shareholder Return Requirements and Beta

Chaplinsky, Susan ; Harris, Robert S.

F-1168 | Published April 01, 1997 | 16 pages Technical Note

Collection: Darden School of Business

This note outlines the link between shareholder-return requirements and a firm's use of debt. It explores the theoretical arguments concerning how the cost of equity changes with the use of debt and d... Read More

Debt Financing, Firm Value, and the Cost of Capital

Chaplinsky, Susan ; Harris, Robert S.

F-1166 | Published March 31, 1997 | 21 pages Technical Note

Collection: Darden School of Business

This note is suitable for an introductory MBA course in corporate finance. It explores how managers determine the proper amount of debt financing to use to fund a firm's operations. It examines the fu... Read More

MCI Communications Corp.: Capital Structure Theory (A)

Chaplinsky, Susan ; Harris, Robert S.

F-1175 | Published March 31, 1997 | 10 pages Case

Collection: Darden School of Business

This case provides an introductory exercise for estimating the cost of capital (cost of equity, weighted average cost of capital) for a firm contemplating a large increase in debt. Students are asked ... Read More

Terminal Values, Multiples, and Competitive Advantage

Harris, Robert S.

F-1202 | Published March 08, 1997 | 9 pages Technical Note

Collection: Darden School of Business

This technical note provides a pedagogical overview of management communication for MBA education. Read More

Value Creation, Net Present Value, and Economic Profit

Harris, Robert S.

F-1164 | Published January 10, 1997 | 18 pages Case

Collection: Darden School of Business

This technical note compares economic-profit (economic value added) and net-present-value techniques for evaluating corporate investments and performance. The note shows the relationship between the t... Read More

Inflation, Exchange Rates, and Required Returns

Harris, Robert S.

F-1158 | Published September 03, 1996 | 11 pages Technical Note

Collection: Darden School of Business

This note describes the links between inflation, exchange rates, and interest rates in an international setting. Students are introduced to the basic ideas, which are illustrated with data from four c... Read More

Capital Structure Theory: A Current Perspective

Chaplinsky, Susan ; Harris, Robert S.

F-1165 | Published January 05, 1996 | 14 pages Technical Note

Collection: Darden School of Business

Finance scholars' approach to capital-structure issues reflects a progression of thought over time. This note provides an overview of the current state of capital-structure theory. One perspective on... Read More

Required Returns, the Market Risk Premium, and Historical Returns

Harris, Robert S.

F-1022 | Published September 03, 1992 | 5 pages Case

Collection: Darden School of Business

This technical note discusses the use of historical returns as a guide for estimating forward-looking required returns on equity. The note discusses uses of short- and long-term interest rates plus eq... Read More

Valuation Methodology: A Comparison of the Weighted-Average Cost of Capital and Equity-Residual Approaches

Harris, Robert S.

F-1007 | Published August 26, 1992 | 10 pages Technical Note

Collection: Darden School of Business

This technical note compares two methods of treating debt usage in discounted-cash-flow valuation of investment projects or companies. The note illustrates that the Weighted Average Cost of Capital ap... Read More

Fundamentals of Discounted Cash Flow

Harris, Robert S.

F-0918 | Published March 29, 1990 | 41 pages Technical Note

Collection: Darden School of Business

This note introduces the time value of money and the general discounted-cash-flow approach to valuation. It covers present value, future value, and effective interest rates, and includes specific exam... Read More

Koppers Co.

Harris, Robert S. ; Puglia, Larry J.

F-0921 | Published March 29, 1990 | 16 pages Case

Collection: Darden School of Business

This case concerns the hostile bid for Koppers Co. and its subsequent acquisition by Beazer PLC for $61 a share, one of the most controversial takeovers of the 1980s. The controversy holds powerful le... Read More

Pricing STRIPS and the Term Structure

Harris, Robert S.

F-0925 | Published March 29, 1990 | 5 pages Case

Collection: Darden School of Business

Using the data on coupon bonds provided in the note, students are asked to estimate the value of portions of the bond (stripping coupons and principal) and deal with the fact that the term structure o... Read More

Cash Flows and Pro Formas

Harris, Robert S.

F-0929 | Published March 29, 1989 | 6 pages Exercise

Collection: Darden School of Business

This note links pro forma forecasting of financial statements with project valuation of cash flows. Students are shown the link among income statements, balance sheets, and cash flows. The exercise af... Read More

Investment Decision And Cash Flows

Harris, Robert S. ; Pringle, John

F-0915 | Published March 29, 1989 | 18 pages Technical Note

Collection: Darden School of Business

A positive net present value (NPV) is a direct estimate of value creation for shareholders and is an operational way of carrying through on the strategy of trying to maximize shareholder wealth. To ca... Read More

Fundamentals Of Capital Budgeting

Pringle, John ; Harris, Robert S.

F-0917 | Published March 29, 1989 | 27 pages Technical Note

Collection: Darden School of Business

This note provides an introduction to evaluation of corporate investment projects. Decision criteria such as net present value, internal rate of return, and paybacks are discussed. Specific examples a... Read More

Carrier and Tyler Refrigeration: An Acquisition For Growth

Liedtka, Jeanne M. ; Harris, Robert S. ; Gibbons, Emily Jean

F-1312 | Published | 27 pages Case

Collection: Darden School of Business

Carrier, a division of multibusiness United Technologies Corporation (UTC), is looking for ways to grow its business. Carrier is considering expansion into commercial refrigeration and is examining a ... Read More