Index

  • Abandonment costs
  • Accounting, lack of single truth in
  • Accounts payable:
    • increasing, pros and cons of
    • PIPES
  • Accounts receivable, PIPES pro forma monthly
  • Accrual accounting methods
  • Accruals, PIPES monthly pro forma accruals calculation
  • Ackman, William
  • Acquisitions, shopping a firm/finding a buyer in. See also Mergers; Dollar Stores
  • Acronyms, trademarked
  • Activity ratios
  • Adjusted present value (APV)
  • Agency, dividend policy and
  • Agency costs
    • excess cash and
    • financial distress and
    • manager behavior, capital structure, and
    • minimizing
  • Agency problems
  • Amortization
  • Analysis for Financial Management (Higgens)
  • Annual percentage rate (APR)
  • Annual reports
  • Annuities
  • Apple Inc.
    • balance sheets, as of 2007–2011
    • brief history of
    • debt policy
    • dividend policy
    • equity policy
    • excess cash
    • financial policies at start of fiscal 2012
    • financial policy recommendations for
    • income statements, 2007–2011
    • justification for financial policy recommendations for
    • post Steve Jobs
    • product market strategy and new product pricing
    • R&D spending by
    • selected ratios, 2008–2011
    • sustainable growth and
    • target debt strategy
  • Arbitrage
  • Arbitrage pricing theory (APT)
  • Arithmetic mean, of market premium
  • Asset beta
  • Asset multiples
  • Asset turnover
  • Asset values, terminal values estimated with
  • Asymmetric information
    • firm financing and
    • firm's management and investors and
    • importance of, insights behind
    • timing of equity issues and
  • AT&T. See also MCI
    • Apple's dividend policy vs. dividend policy of
    • background on
    • cash flow statements, 1978–1983
    • decrease in market capitalization
    • income and balance statements, 1979–1983
    • major divestitures of
    • “new,” accuracy of projections
    • “new,” development of pro formas, 1984–1988 (expected-case)+
    • “new,” expected-case, worst-case scenarios for
    • “new,” financial policies of
    • “new,” pro forma balance sheets, 1984–1988
    • “new,” pro forma cash flow statements 1984–1988
    • “new,” pro forma income statements, 1984–1988
    • “new,” projected sources of financing
    • “old,” additional selected ratios, 1979–1983
    • “old,” debt policy of
    • “old,” debt ratio calculation
    • “old,” dividend policies
    • “old,” equity policy
    • “old,” financial objectives of
    • “old,” financial policies of
    • “old,” fitting financial policies to corporate financial needs
    • “old,” sustainable growth
    • “old” to “new,” financial (ratio) impact of product market changes
  • Auto purchase, cost of debt and
  • Average method (VG)

  • “Baby Bells”
  • Backdoor equity
  • Balance sheets:
    • Apple Inc.
    • AT&T
    • cash flows in valuation
    • Congoleum
    • Family Dollar
    • Marriott Corporation
    • Massey Ferguson
    • MCI
    • PIPES
    • Sungreen Corporation (fictional)
    • typical
  • Bank debt
  • Bank of America
  • Bankruptcy
    • cost of debt and
    • direct and indirect costs of
    • financial distress and
  • Barra Inc.
  • Basic business risk (BBR)
    • MCI
    • unlevered betas and
  • Bath Iron Works
  • Behavioral finance
  • Bell, Alexander Graham
  • Bell System
  • Berra, Yogi
  • Beta
    • in CAPM formula
    • of cash
    • debt added to firm and
    • definition of
    • impact of change on
    • risk return spectrum and
    • unlevering and relevering
  • Black, Conrad
  • Black, Fischer
  • Block trades
  • Board of directors:
    • choosing, and voting by
    • fiduciary responsibility of
  • Bonds:
    • beta of, changes in market returns and
    • callable
    • convertible
    • extinguishing
    • original issue discount
  • Book leverage
  • Bouchard, Andre
  • Bricklin, Dan
  • Burn rates
  • Bush, George W.
  • Business press
  • Business Week

  • Calbert, Michael
  • Callable bonds
  • Call provision
  • Capital, cost of
  • Capital Asset Pricing Model (CAPM)
  • Capital expenditure (CAPEX)
    • calculating from pro forma statements
    • MCI
  • Capital gains
    • deferring, impact of
    • dividend tax rates and
  • Capital intensity
  • Capital market:
    • AT&T and
    • imperfections in
  • Capital structure
    • agency problems and
    • amount of financing required
    • Apple Inc.
    • changes in
    • definition of
    • determining, checklist for
    • future opportunities and
    • internal, external, and cross-sectional perspectives
    • Marriott Corporation case study
    • M&M and irrelevance of
    • optimal
    • pecking order theory of
    • setting, in practice
    • suboptimal, excess cash and
    • target setting for: checklist
    • textbook view of
  • Cash. See also Cash flows; Cash flow statements; Excess cash
    • beta of
    • survival of firm and
  • Cash cycle, PIPES
  • Cash dividends
  • Cash flow hypothesis
  • Cash flows
    • dividend policy and
    • inflation and
    • management of
    • nominal or real
    • nuances of
    • pecking order theory and
    • separating from terminal values
    • signals and
    • stable, profitable firms and
    • timing of
    • in valuation
    • what is and is not included in
  • Cash flow statements:
    • AT&T
    • MCI
    • Sungreen Corporation (fictional)
  • Catastrophic risk
  • Catering theory
  • Center for Research into Security Prices (CRSP)
  • Century Capital Associates
  • Certificates for amortizing revolving debits (CARDS)
  • Certificates for automobile receivables (CARS)
  • Chief financial officer (CFO):
    • financial strategy and
    • three main tasks of
  • Chrysler
  • Collateral evaluation
  • Collateralized accrued treasury securities (CATS)
  • Combination offering
  • Common size balance sheets, PIPES
  • Common size income statements, PIPES
  • Common size ratios
  • Common stock
  • Comparables
  • Complete market
  • Compounding
  • Congoleum
    • balance sheet, 1979 and 1980
    • balance sheets, 1973 to 1978
    • basic business risk of
    • details of LBO deal
    • equity returns
    • financing the deal
    • highlights of Lazard fairness opinion
    • income statements 1973 to 1978
    • lead up to leveraged buyout
    • patent expiration issue
    • price paid to old stockholders
    • pro formas
    • sale of
    • short history of
    • value creation from LBO
    • years after LBO
  • Contingency contracts
  • Contingency fees
  • Contingent claims
  • Contributed capital
  • Control premiums
  • Conversion price, calculating
  • Convertible adjustable preferred stocks (CAPS)
  • Convertible bonds
  • Convertible debt
  • Convertibles
    • calling
    • definition of
    • synthetic
  • Corporate finance:
    • diagram of
    • four objectives in, and their trade-offs
    • main role of
    • M&M and
    • reluctance around equity issues and
    • schematic
    • tasks tied to primary functions of
  • Corporate financial policies
  • Corporate strategy
  • Corporate tax rates, current federal, graduations in
  • Cost of capital. See also Weighted average cost of capital
    • definition of
    • discount rates and
    • nuances in
  • Cost of debt (Kd):
    • in determining WACC
    • estimating project's debt rating and
  • Cost of equity (Ke)
    • calculating, levering and unlevering beta
    • estimating, arbitrage pricing theory and
    • formula for
  • Cost of goods sold (COGS)
    • PIPES monthly pro forma income statements and
    • PIPES pro forma balance sheet, 2013
    • PIPES pro forma income statement, 2013
    • PIPES pro forma monthly inventory calculation, 2013
  • Covenants, ratio-dependent
  • Cross-sectional analysis

  • Days inventory ratio
  • Days payable ratio
  • Days receivable ratio
  • Debt:
    • after-tax cost of
    • before-tax cost of
    • beta of
    • changes in amount of
    • corporate tax advantages of
    • cost of
    • financing with
    • minimizing cost of
    • profitable vs. unprofitable firms and
    • relative tax advantage of
    • setting capital structure and
    • tax shield of
  • Debt/equity:
    • cost of capital and
    • optimal ranges, differences by industry
  • Debt/equity ratio, impact of changes in
  • Debt exchangeable to common stock (DECS)
  • Debt overhang
  • Debt policy:
    • important aspects of
    • old AT&T
  • Debt ratings:
    • estimating, cost of debt and
    • new AT&T
  • Debt ratios
    • of NYSE firms by industry, 2013
    • reluctance to issue equity and
  • Debt versus equity, issuing, empirical evidence on
  • Debt-with-warrants
  • Delaware, firms incorporated in
  • Delaware Chancellery court
  • Dell, Michael
  • Depreciation
  • Depreciation tax shields
  • Derivatives
  • Descartes' Rule of Signs
  • Dilution
  • Discounted cash flows
  • Discount rates:
    • cost of capital and
    • free-cash flow techniques and
  • Discounts and discounting
  • Disney, Walt
  • Disneyland
  • Disney World
  • Distressed liquidation
  • Diversification, portfolio theory and
  • Dividend policy(ies)
    • agency and
    • Apple Inc.
    • cash flow and
    • financial distress and
    • information asymmetry and
    • Marriott Corporation
    • M&M and initial theory on
    • “new” AT&T
    • “new” MCI
    • “old” AT&T
    • signaling and
    • taxes and
    • theory of
  • Dividend reinvestment plan (DRP), AT&T and
  • Dividends
    • cash
    • as credible, simple, and visible
    • disappearing, NYSE firms and
    • empirical evidence on
    • signaling theory for
    • special
    • sticky
    • tax rates on
  • Dodd-Frank Act
  • Dollar General
    • comparison between Dollar Tree, Family Dollar, and
    • Federal Trade Commission and
    • hostile tender offer commenced by
    • managerial discretion and bid by
    • proxy contest started by
    • strategic rationale for Family Dollar purchase
  • Dollar retailers, three largest, comparison, 2014
  • “Dollar store” concept, creation of
  • Dollar Stores:
    • cost of capital estimations
    • derivation of free cash flow formulas
    • execution of merger
    • history of
    • strategic issues in acquisition of
    • terminal values calculation
    • value of
  • Dollar Tree
    • comparison between Dollar General, Family Dollar, and
    • Federal Trade Commission and
    • managerial discretion and bid by
    • merger agreement between Family Dollar and
    • strategic rationale for Family Dollar purchase
  • Dot-coms:
    • bubble
    • burn rates and
    • overvaluation of
  • Drexel Burnham Lambert
  • DuPont Formula (or Model)
  • Dutch auction tenders

  • Earnings before interest, taxes, depreciation, and amortization (EBITDA)
  • Earnings before interest and taxes (EBIT)
  • Earnings multiples
  • Earnings per share (EPS)
  • EBIT *, free cash flows to the firm and
  • Economic value added (EVA)
  • Economies of scale
  • Economist, The
  • Efficient markets
  • Eisner, Michael
  • Elliot Management
  • Equity:
    • beta of
    • CAPM and determining cost of
    • changes in amount of
    • financing with
    • Marriott Corporation
    • “old” AT&T and
  • Equity cash flows:
    • in and out
    • payouts of
    • signals and
  • Equity issues:
    • asymmetric information and timing of
    • AT&T and
    • reluctance around, implications of
    • typical
  • Equity linked securities (ELKS)
  • Equivalent annual cost
  • Eurobond markets
  • Euromoney
  • Excess capacity
  • Excess cash
    • definition of
    • disadvantages and advantages of
    • Marriott Corporation and handling of
    • synonymous with negative debt
    • what to do with
  • Excess returns
  • Execution financing

  • Factoring
  • Fairness option
  • “Fallen angels”
  • False signals
    • dividends and
    • penalty for
  • Fama, Eugene
  • Family Dollar
    • balance sheets, 2010–2014
    • bidders for
    • bid for
    • comparison between Dollar General, Dollar Tree, and
    • cost of capital estimation
    • discounted cash flows
    • Dollar General's hostile tender offer and
    • Federal Trade Commission and
    • free cash flows to equity and
    • free cash flows to the firm and
    • history of
    • income statements, 2010–2014
    • key events in bidding for, 2014 and 2015
    • managerial discretion and
    • merger agreement between Dollar Tree and
    • obstacles in merger deal
    • poison pill adoption by
    • pro forma financial statements with authors' constant debt ratio
    • pro forma free cash flows to equity with constant debt ratio
    • shareholder lawsuits against board of
    • strategic rationale for Dollar General's purchase of
    • strategic rationale for Dollar Tree purchase of
    • valuation
  • Farm equipment demand, interest rate sensitivity and
  • Federal Trade Commission (FTC)
  • Fibic Corp.
  • Finance:
    • as “art,” not science
    • intelligent approach to
    • modern, brief history of
  • Financial Analysis Journal
  • Financial distress
    • adjusted present value and
    • costs of
    • dividend policy and
  • Financial goals:
    • consistency in
    • setting
  • Financial Management journal
  • Financial market
  • Financial Markets and Corporate Strategy (Grinblatt and Titman)
  • Financial objectives for firms, trade-offs in corporate finance and
  • Financial policies
    • consistency in
    • information content for market and
    • objectives of
    • product market policies and
  • Financial reloading
  • Financial reporting
  • Financial slack
  • Financial Times
  • Financing decisions, investment decisions and
  • Financing of firms, asymmetric information and, examples of
  • Financing policy, as strategic weapon
  • Financing strategy:
    • matching maturity of product market strategy to maturity of
    • product market strategy aligned with
  • First Boston
  • First in first out (FIFO)
  • Fisher, Irving
  • Fixed price tender
  • Forecasts:
    • assumptions as basis of
    • ratios and
  • Forest products industry
  • Frankston, Bob
  • Free-cash-flow formulas, comparing
  • Free cash flows to debt (FCFd)
    • discount rates and
    • formula for
  • Free cash flows to equity (FCFe)
    • discounting
    • discount rates and
    • Family Dollar and
    • formula for
  • Free cash flows to the firm (FCFf)
    • calculating elements of
    • discount rates and
    • Family Dollar calculations
    • formula for
  • Fuji
  • Funding needs, determining
  • Fuqua, J. P.
  • Future value (FV)

  • Garden, Edward
  • General Motors
  • General Utilities Act, abolition of
  • Geometric mean
  • Gino's, Marriott's purchase of
  • Glass Lewis & Co.
  • Goeken, John
  • Goodwill
  • Google
  • Government bonds (U.S.), risk-free rate and rate on
  • GTE
  • Gulf Oil, agency costs example

  • Hamada, Bob
  • Harpel, James
  • Hedge funds
  • Hostile takeovers, poison pills and
  • Host International, Marriott's purchase of
  • Host Marriott
  • “Hot” and “cool” issue markets
  • Howard Johnson's, Marriott's purchase of
  • Hubbard, Gardiner
  • Hurdle rate
  • Hybrid instruments, signaling effects mitigated with

  • Ibbotson, Roger
  • Ibbotson Associates
  • IBM
  • Icahn, Carl C.
  • Income statements:
    • Apple Inc.
    • AT&T
    • Congoleum
    • Family Dollar
    • Marriott Corporation
    • Massey Ferguson
    • MCI
    • PIPES
    • Sungreen Corporation (fictional)
  • Industrial revenue bonds, cost of capital and
  • Inflation, cash flows and
  • Information asymmetry. See also Asymmetric information
    • clustering of equity issues and
    • dividend policy and
  • Initial public offerings (IPOs)
  • Institutional rules, knowing
  • Institutional Shareholder Services
  • Intangible assets
  • Intel
  • Interest rate(s):
    • compounding and discounting and
    • farm equipment demand and
    • periodic
    • subsidized
  • Interest tax shields. See also Tax shields
  • Internal capital markets, importance of
  • Internal funds, asymmetric information and
  • Internal investments, mergers vs.
  • Internally generated funds, sustainable growth and
  • Internal rate of return (IRR)
    • net present value vs.
    • scale of project ignored by
  • International Harvester
  • Inventory:
    • cash cycle and
    • high vs. low
    • PIPES pro forma monthly inventory calculation, 2013
    • turnover
  • Inverted yield curve
  • Investment banks
  • Investment decisions:
    • financing decisions and
    • three major elements in
  • Investment rules:
    • internal rate of return
    • net present value
  • IT&T

  • Jobs, Steve
  • John Deere
  • Journal of Applied Corporate Finance, The
  • Journal of Portfolio Management, The
  • Junior notes
  • Junk bond market

  • Kaplan, Steve
  • Kapor, Mitch
  • KKR, acquisition of Dollar General Corporation
  • Kodak

  • Last in first out (LIFO)
  • Lazard Frères & Co.
    • Congoleum fairness opinion, highlights
  • Lazy managers, and the “quiet life”
  • Lease financing
  • Lending covenants
  • Leverage:
    • agency conflicts between equity and debt holders and
    • debt/equity cost with changes in
    • management's actions and effect of
  • Leveraged buyouts (LBOs). See also Congoleum
    • changes in, post-Congoleum
    • Congoleum's pro formas with
    • Congoleum's pro formas without
    • future, Congoleum as blueprint for
    • good candidates for
    • performance incentives of
    • in wake of Congoleum's LBO
  • Leverage ratios
  • Levered beta
  • Levine, Howard
  • Life, authors' thoughts on
  • Lintner, John
  • Lipton, Martin
  • Liquidation, distressed
  • Liquidity premium
  • Liquidity ratios
  • Loan covenants
  • Long-term capital gains
  • Long Term Capital Management
  • Long-term debt, current and non-current portions of
  • Lotus Development Corporation

  • M&M
    • assumptions of
    • bankruptcy costs and
    • corporate finance and
    • dividend policy in world of
    • irrelevance of capital structure and
    • modern corporate finance and
    • practice of corporate finance and
    • simplest world of, what is irrelevant in
    • taxes in
  • Management-stockholder conflicts
  • Managerial discretion, Family Dollar
  • Marginal tax rates
  • Market capitalization (or market cap)
  • Market imperfections
  • Market leverage
  • Market risk premium
  • Markowitz, Harry
  • Mark-to-market accounting
  • Marriott Corporation
    • capital market impact and future for
    • capital structure changes and
    • capital structure decisions
    • corporate financial policies for
    • current and pro forma earnings per share
    • dividend policy
    • division into two firms
    • early history of
    • excess cash flow alternatives and
    • how it should buy its shares
    • impact of product market on financial policies
    • income statements and balance sheets
    • investment decisions by
    • loan covenants
    • price for share repurchases
    • selected ratios
    • share repurchase decision
    • summary financial information, 1979–1982
    • sustainable growth and excess cash flow for
    • target capital structure checklist
    • working capital and
  • Marriott Courtyard chain
  • Marriott International
  • Marriott Residence Inns
  • Massey Ferguson
    • balance sheets
    • competitive comparison, 1976–1980
    • in default
    • financing, 1971–1976
    • income statements
    • performance after 1976
    • product market strategy
    • ratios
    • restructuring of
    • sustainable growth
    • target capital structure checklist
    • what happened to
  • May, Peter
  • McCardell, Archie R.
  • McGowan, William
  • MCI. See also AT&T
    • Apple's dividend policy vs. dividend policy of
    • brief history of
    • common equity
    • elections, long-distance-carrier market, and
    • finances of
    • goes public
    • “new,” alternative financing choices
    • “new,” capital structure with alternative financing choices
    • “new,” competitive advantages of
    • “new,” debt maturities
    • “new,” debt ratio
    • “new,” dividend policy
    • “new,” financing choice
    • “new,” financing needs of
    • “new,” pro forma cash flows, 1984–1988: expected case
    • “old,” balance sheets, 1979–1983
    • “old,” cash flows, 1979–1983
    • “old,” convertibles issued by
    • “old,” debt maturity policy
    • “old,” debt ratio
    • “old,” dividend policy of
    • “old,” external financings, 1978–1983
    • “old,” financial needs before AT&T divestiture
    • “old,” financial policies of
    • “old,” income statements, 1979–1983
    • “old,” interest rates on straight debt issues
    • “old,” lease financing
    • pro formas, 1984–1988, development of
    • WorldCom merger
  • Merck
  • Mergers:
    • economic rationale behind
    • three major elements of
  • Mergers and acquisitions. See Acquisitions; Dollar Stores; Mergers
  • Merrill Lynch
  • Merton, Robert
  • Microsoft
  • Milken, Michael
  • Miller, Merton
  • “Miracle of modern finance,” theoretical explanation of
  • MIT
  • Modigliani, Franco
  • Monopoly, nondurable
  • Monte Carlo simulations
  • Morgan Stanley
  • Multiple hurdle rates
  • Multiples, terminal values estimated with
  • Mutual fund industry, theoretical basis for
  • Myers, Stewart

  • Navistar
  • Negative debt, excess cash as
  • Negative working capital
  • Net present value (NPV)
    • internal rate of return vs.
    • negative
    • positive
    • positive, asymmetric information and
    • projects with unequal lives and
    • of zero, M&M assumptions and
  • Net spontaneous working capital
  • Net working capital
  • Net worth
  • New York Stock Exchange (NYSE), disappearing dividends of firms on
  • NeXT
  • Nicholson, Eddy G.
  • Nominal cash flows
  • Nominal discount rates
  • Nondurable monopoly
  • NYSE Corporations:
    • capital structure of, 1983–2013
    • source of funds, 1983–2013

  • “Open-market” repurchases, tender offers vs.
  • Operating leverage
  • Operating ratios
  • Opportunity costs
  • Optimal capital structure
  • Original issue discount (OID), bonds
  • Overhanging convertible
  • Owens Corning Fiberglass

  • Paulson, John
  • Paulson and Company
  • Payback method
  • Pecking order theory
  • Peltz, Nelson
  • Pension liabilities:
    • unfunded
    • valuing, discount rate used in
  • Percentage of sales ratios
  • Performance pricing contracts
  • Periodic interest rate
  • Perpetuities, with growth
  • Perpetuity formulas
  • Perpetuity tax shield
  • Pershing Square Capital Management
  • Personal taxes
  • Pfizer
  • Pickens, T. Boone
  • Pinellas Plumbing Equipment and Supply (PIPES)
    • accounts payable
    • balance sheets, 2009–2012
    • cash cycle
    • circular relationships
    • determining financial health of
    • income statements, 2009–2012
    • leverage and collateral evaluation
    • loan evaluation
    • monthly pro forma balance sheets
    • monthly pro forma income statements
    • product market strategy
    • profitability ratios
    • pro forma balance sheet, 2013
    • pro forma balance sheets 2013 to 2015
    • pro forma income statement, 2013
    • pro forma income statements, 2013 to 2015
    • projecting out to 2014 and 2016
    • ratio analysis
    • revised pro forma income statement, 2013
    • seasonality and funding of
    • sources and uses of funds statement
  • Plug figures
  • Poison pills
  • Polaroid
  • Portfolio theory
  • Preference equity redemption cumulative stock (PERCS)
  • Preferred stock
    • convertible
  • Presentation book, preparing
  • Present value (PV)
  • Price-to-earnings (P/E) ratio
    • earnings per share and
    • terminal values and
  • Primary offering
  • Principal-agent problems (agency problems)
  • Principles of Corporate Finance (Brealy and Myers)
  • Private debt
  • Private equity firms, LBO model and
  • Private investment in public equity (PIPEs)
  • Private placement debt
  • Procter and Gamble (P&G)
  • Production, political risk and economies of scale in
  • Product market, imperfections in
  • Product market strategy:
    • financing strategy aligned with
    • firm value and
    • Massey Ferguson
    • matching maturity of, to maturity of financing strategy
    • PIPES
  • Profitability ratios
  • Profit before taxes (PBT)
  • Pro formas
    • AT&T
    • Congoleum
    • creating
    • Family Dollar
    • forecasting longer time horizons
    • MCI
    • PIPES
    • politics and
    • strategic analysis and sound economic underpinning for
  • Projects with unequal lives, comparing
  • Project valuation:
    • financial policies and impact on
    • financing and
    • five techniques for
  • Property, plant, and equipment (PP&E)
  • Proxy advisory firms
  • Proxy contests
  • Prudent business judgment doctrine
  • Prudential Insurance Company
  • Public debt

  • “Quiet life,” lazy managers and

  • Radaker, Byron C.
  • Ratio analysis
    • AT&T change from old to new
    • consistency in
    • PIPES
  • Ratio-dependent covenants
  • Ratios:
    • categories of
    • computing
    • forecasting and
    • interpreting
    • uses for
  • Real cash flows
  • Real discount rates
  • Real options (strategic choices)
  • Reich, Victor A.
  • Reloading
  • Retained earnings
  • Return on assets (ROA)
  • Return on equity (ROE)
    • Apple Inc., in 2011
    • Dupont Formula and
    • increasing, three levers for
    • relationship with return on assets
    • sustainable growth and
  • Risk-free rate
  • Riskless debt, CAPM formula on
  • Risk premium
  • Risk return spectrum, beta and
  • Rosenfeld, Eric
  • Ross, Steve

  • Safe harbor rule
  • Safe vs. risky debt
  • Sales predictions, pro forma preparation and
  • Sales-to-assets ratio, sustainable growth and
  • Salomon Brothers
  • Samsung
  • Sanders, Thomas
  • Scholes, Myron
  • Seasonality:
    • firm's funding and
    • PIPES monthly pro forma balance sheets
    • PIPES monthly pro forma income statements
    • PIPES pro forma monthly accounts receivable, 2013
  • Secondary equity offerings (SEOs)
  • Secondary offering
  • Self-dealing
  • Selling, General and Administrative expenses (SG&A)
  • Senior debentures
  • Senior notes
  • Shafford, Richard
  • Share repurchases:
    • Apple Inc. and
    • Marriott Corporation and
    • signaling theory and
  • Sharpe, William
  • Shelf registrations
  • “Shell the beaches”
  • Short-term capital gains
  • Short-term equity participation units (STEPS)
  • Signals and signaling
    • dividend policy and
    • equity cash flows and
    • false, penalty for
    • good
    • hybrid instruments and
    • negative, convertible issues and
    • positive, dividends and
  • Sources and uses of funds:
    • description of
    • PIPES
  • Special dividends
  • Spreadsheets, proformas and, cautionary note
  • Standstill agreements
  • Stock dividends
  • Stockholder-management conflicts
  • Stock market bubbles
  • Stock prices:
    • capital structure and impact on
    • dividends and
    • earnings per share and
    • equity issue announcements and
    • undervalued or overvalued, asymmetric information and
  • Stock splits
  • Straight debt
  • Straight preferred stock
  • Strategic analysis
  • Strategic choices (real options)
  • Strip financing
  • Subordinated notes
  • Subsidized rates
  • Sungreen Corporation (fictional)
    • balance sheets
    • building new capacity
    • calculating elements of free cash flow to the firm
    • cost of debt for Kingsport plant and mill
    • cost of equity for Kingsport project
    • income statements
    • interest in wrapping paper
    • Kingsport project's twin firms
    • K0 or WACC for Kingsport plant
    • net present value of Kingsport plant and mill
    • net working capital year by year
    • projected balance sheets for Kingsport
    • projected cash flows
    • projected income statements for Kingsport
    • selected financial information
    • strategic analysis
    • strategic considerations for
    • terminal value estimation
    • terminal values and Kingsport project
    • valuation example
    • weighted average cost of capital analysis
  • Sunk costs
  • Supernormal growth rates
  • Survival principle
  • Sustainable growth
    • Apple Inc.
    • DuPont Formula and
    • explanation of
    • internal capital markets and
    • “old” AT&T and
    • power of
  • Sustainable growth rate
    • definition of
    • financial policies consistent with
    • funding needs and
  • Synergies, mergers and
  • Synthetic convertibles

  • Takeovers:
    • hostile, poison pills and
    • too little debt and
  • Target capital structure, internal, external, and cross-sectional criteria
  • Target debt level, relevering debt and
  • Target debt ratio
  • Targeted stock
  • Taxes. See also Tax shields
    • dividend policy and
    • M&M and
    • personal
  • Tax Reform Act of 1986
  • Tax returns, quarterly installments
  • Tax shields
    • adjusted present value and
    • of debt
    • leveraged buyouts and
    • optimal capital structure and
    • value from, creation of
  • Technical analysis
  • Telex
  • Tender offers
    • Marriott's repurchase decision and
    • open, length of time for
    • “open-market” repurchases vs.
  • Terminal value(s)
    • asset values and estimations of
    • computing
    • multiples and estimation of
    • perpetuity formula and estimations of
    • project break even and
    • separating from cash flows
    • using more than one technique with
  • Term premium
  • Textbooks, recommended
  • Textbook view, of capital structure
  • Thatcher, Margaret
  • Three-factor model (Fama and French)
  • Tiered financing
  • Time value of money
    • annuities
    • compounding and discounting
    • overview
    • periodic interest rate
  • Trade-off theory
  • Trailing earnings
  • Treasury bill rate
  • Treasury bills (T-bills)
  • Treasury investor growth receipts (TIGRS)
  • Trian Partners
  • Trudeau, Pierre
  • Turner, Cal
  • Turner, J. L.
  • Turnover ratios
  • Twin-firm technique

  • Unit deals
  • United States, bond/debt market in
  • Unlevered beta
  • Usable bonds
  • Usable debt, issuing with warrants

  • Valuation. See also Sungreen Corporation
    • cash flows and
    • discounted cash flow variations in
    • five primary techniques for
    • formulas, average market premium used in
    • most commonly used techniques in
    • nominal cash flows, nominal discount rates, and
    • perpetuity formulas in
    • politics of
    • project, project, project rule in
  • Verizon Communications
  • VisiCalc

  • Wall Street Journal
  • Wall Street tenets, equity financing and
  • Warrants
    • definition of
    • usable debt issued with
  • Weighted average cost of capital (WACC)
    • adjusted present value and
    • assumptions behind
    • cost of debt in determining
    • formula for
    • free-cash-flows techniques, discount rates, and
    • Kd, Ke, Ko and
    • Sungreen and adjusting for tax shield
    • weights for debt and equity in
  • Wham-O Toy Co.
  • Wilson, Gary
    • as Disney CFO
    • financial policies proposed by
  • Working capital:
    • Marriott Corporation and
    • sources and uses of funds and
  • WorldCom, bankruptcy of
  • Wozniak, Steve
  • Wrapping paper market
  • Wriston, Walter

  • Yield curve prices

  • Zero-based risk swaps (ZEBRAS)
  • Zero debt level
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