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Case
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Reference no. 9-296-003
Subject category: Finance, Accounting and Control
Authors: Kendall Backstrand (Harvard Business School); W Carl Kester (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1996
Version: 13 March 1998
Length: 12 pages
Data source: Field research
Topics: Capital budgeting; Capital costs
Share a link: https://casecent.re/p/44580
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Abstract

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.
Location:
United Kingdom
Industry:
Automotive
Size:
USD2.0 billion revenues
Other setting(s):
1993-2004
Teaching note
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Reference no. 5-204-158
Subject category: Finance, Accounting and Control
Authors: W Carl Kester (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2004
Version: 19 September 2005
Length: 11 pages
Data source: Field research
View full details

About

Abstract

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.

Settings

Location:
United Kingdom
Industry:
Automotive
Size:
USD2.0 billion revenues
Other setting(s):
1993-2004

Related

Teaching note
-
Reference no. 5-204-158
Subject category: Finance, Accounting and Control
Authors: W Carl Kester (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2004
Version: 19 September 2005
Length: 11 pages
Data source: Field research
View full details