- abandon, option to
- abandonment risk
- abstract data
- accelerated book-building
- accelerating treadmills
- account balancing
- account statement
- accounting criteria
- financing choice
- share issue
- value creation
- accounting currency risk
- accounting data analysis
- accounting documents
- accounting indicators, value creation
- accounting policy assessment
- accounting rates of return
- accounting standpoint
- complex points
- deferred tax
- accounting values, equity/debt
- accounts see bank accounts
- accounts payable
- accretion
- accruals
- accrued interest
- acquisition facility
- acquisitions
- goodwill and
- real estate
- shareholders’ equity
- shares
- tax implications
- see also mergers and acquisitions
- actions de préférence
- activist funds
- actuarial present value
- additive methods, valuation
- additivity of value
- adjustable-rate preference share
- “adjusted income”
- adjustment
- of investor’s risk
- per share data
- adjustment coefficient
- “adjustment factor”
- ADRs see American depository receipts
- advance payment
- advice and services
- affirmative covenants
- after-tax basis
- debt
- investments
- ROCE calculation
- “agency costs”
- agency theory
- bankruptcy
- corporate governance
- dividends
- leveraged buyout
- risk management
- shareholder structure
- AGM see Annual General Meeting
- agreement in principle
- all-share deals
- allocation of shares, IPOs
- ALRG see asset liability refinancing gap
- alternative management
- Altman, Edward
- American depository receipts (ADRs)
- amortisation
- brands
- cash flow statement
- finance leases
- loans
- operating profit
- Annual General Meeting (AGM)
- annuity value
- anticipation mechanism, share issue
- apparent cost
- appraisal clause, joint venture agreements
- approval rights, shareholder changes
- APT see arbitrage pricing theory
- arbitrage
- investor’s behaviour
- option pricing
- value additivity rule
- working capital management
- arbitrage pricing theory (APT)
- ArcelorMittal case study
- arithmetic calculation, cost of capital
- arm’s-length transactions
- arranger, bank as
- articles of association
- artificial intelligence
- Asian options (average strike options)
- assessment
- accounting policy
- earnings power
- financial analysis
- residual risk
- asset-backed loans
- “asset dealers”
- asset disposal
- asset liability refinancing gap (ALRG)
- asset management
- asset value
- capital structure
- financial securities
- per share
- assets
- beta of
- capital losses
- consolidated accounts
- contributed
- deferred tax
- discounting rate and
- financing linked to
- illiquidity risk
- investments
- legal merger
- liquidating
- liquidity perspective
- off-balance-sheet
- real estate
- real versus financial assets
- revaluing
- risk
- strike price
- underlying
- see also financial assets; fixed assets; net assets
- assimilation, bonds
- associated undertakings
- associates
- income from
- investments in
- asymmetry of information
- asymmetry of risk
- at the money options
- attached warrants, securities
- auctions
- “automated” financial analyses
- average maturity, bonds
- average rate, shares
- average strike options
- avoidance principle, risk management
- back-stops, bought deals
- “backdoor equity” hypothesis
- backup lines, commercial paper
- balance of power
- balance sheet
- analysis methods
- cash on
- concepts
- consolidated accounts
- deferred tax assets/liabilities
- defined benefit plans
- definitions
- forward rate agreement
- intermediation
- leverage effect
- liquidity
- main items
- working capital
- Bancel–Perrotin system
- bank accounts
- balancing
- without secondary market
- bank-based economies
- bank charges
- bank debt products
- bank financing
- bank guarantees
- bank loans
- bank terms, checking
- banking covenants
- bankruptcy
- capital structure policy
- causes
- distress cost
- financial theory
- illiquidity risk
- LBO exit
- procedures
- restructuring and
- bankruptcy costs
- banks
- cash management
- company finance
- dividend payments
- free riders
- offering position
- relationship with companies
- restructuring
- role in security sales
- takeover role
- barrier interest rate options
- barrier options
- barriers to entry
- bearish markets
- before-tax free cash flow
- behavioural finance
- cash management
- entrepreneurs
- IPO success
- manager’s character
- mergers and acquisitions
- theoretical framework
- benchmarking
- Benveniste, I.
- beta assets
- beta coefficient
- calculating
- forecasting
- parameters behind
- stocks
- biases, taxes
- bilateral loans
- bills of exchange
- BIMBO transaction
- binding offers, negotiating
- binomial method, option pricing
- Black, Fisher
- Black–Scholes model
- block trade shares
- blocking minority, shareholders
- Blume, M.
- board of directors
- corporate governance
- functioning of
- one-tier/two-tier
- takeover bid sabotage
- Bodie, Zvi
- bond coupon rate
- bond markets, CIB access
- bond value, convertible bonds
- bondholders’ voting rights
- bonds
- assimilation
- basic concepts
- convertible
- convexity measures
- debt rating
- definition
- fixed-rate
- further issues
- high-yield
- loans
- long-term
- maturity of
- modified duration
- negotiating terms
- preference shares
- secondary market
- selling
- zero-coupon
- see also hybrid financial securities
- bonus share award
- book-building process
- book profitability
- book rates of return
- book value
- capital employed and
- of equity
- goodwill
- growth rate
- intangible fixed assets
- market value and
- shareholder’s equity
- shares
- “bootstrap game”
- borrowers/borrowing capacity
- bottom-up approach, portfolio management
- bought deals
- brands
- breakeven point
- calculating
- cost of capital
- debt raising
- definition
- margin analysis
- refined analysis
- strategic analysis
- strategy impact
- types
- bridge loans
- brokers
- budgets, cash management
- bullet bonds
- bullet repayment, maturity
- business angels
- business combinations
- business contraction
- business development/extension
- business loan types
- business manager role
- business plan
- building
- financing companies
- restructuring
- risk assessment through
- young companies
- business plan horizon
- business reduction
- business risk
- buy-backs
- distribution
- shareholder position
- buy-in, LBOs
- buy options see call options
- buy-out, LBOs
- buy–sell provision see Dutch clause
- buy valuation, companies
- buyers
- of capital
- of cash
- goodwill
- options
- buyer’s credit
- buyer’s market
- by-function income statements
- consolidated accounts
- operating costs
- value added
- by-nature income statements
- individual accounts
- operating costs
- value added
- calendar anomalies
- call options
- call provision, convertible bonds
- Campello, M.
- cancellation of shares
- cap, interest rate options
- CAPEX see capital expenditure analysis
- capex facility
- capital
- cost of
- “frozen”
- subdividing
- warrants raising
- weighted average cost method
- see also debt capital; shareholder equity; working capital
- capital asset pricing model (CAPM)
- capital charge, value creation
- capital decrease see capital reduction
- capital employed
- book value difference
- definition
- extreme volatility of
- goodwill
- gross
- growth rate
- market value
- policy
- put option on
- ratio to operating profit
- restating items of
- return on
- risk of
- solvency
- terminal value based on
- value of
- very high risk of
- see also operating assets
- capital-employed analysis, balance sheet
- capital expenditure analysis (CAPEX)
- capital expenditures
- calculating
- cash flow and
- financial analysis
- purpose of
- stability principle
- wealth creation
- working capital
- yield to maturity
- capital gains
- capital gains tax
- capital increases
- cost
- defensive measures
- definition
- EPS decrease
- methods
- share issue
- start-ups
- capital leases
- capital losses, assets
- capital market line
- CAPM relationship
- risk-free assets and
- capital markets
- capital payments
- capital rationing, PVI and
- capital reduction
- choosing method
- exceptional dividends
- capital structure
- change as signal
- choosing
- of competitors
- design of
- leverage effect
- modern theory of
- parameters use
- perfect capital markets
- policy
- capitalisation
- discounting factors
- real estate acquisition
- shares
- capitalisation factor
- CAPM see capital asset pricing model
- captive insurance
- carried interest, LBO funds
- carrybacks
- carryforwards, tax loss
- carrying value, consolidated accounts
- carve-outs
- cascade structure
- cash
- balance sheet
- buying
- movements in
- as profitability indicator
- providing shareholders with
- recession conditions
- wealth distinction
- cash acquisition
- cash assets
- “cash at hand”
- cash balances
- centralisation of
- cost of capital
- investing
- cash budgeting
- cash certificates
- cash culture
- cash disbursements from expenditure
- cash equivalents
- cash flow
- accounting for
- analysis of earnings
- bonds
- business plan horizon
- centralisation of
- classifying company’s
- company finance
- defining
- discounting
- earnings to
- effective annual rate
- equilibrium between
- forecasting horizons
- future
- investment generation
- negotiation
- NPV calculation
- operating activities
- option pricing
- present value of
- pros and cons of approach
- reason in terms of
- reinvesting
- rights/commitments
- share issue
- start-ups
- types
- value of security
- see also free cash flow; funds from operations
- “cash flow fade” method
- cash flow hedges
- cash flow return on investment (CFROI)
- cash flow statement
- financial analysis
- income statement differences
- operating activities and
- cash flow value
- at maturity
- net asset value
- cash generating units (CGUs)
- cash inflows, shareholders’ equity
- cash management
- basic concepts
- optimising
- based on value dates
- within groups
- cash mutual funds
- cash offers
- cash payment, mergers and acquisitions
- cash pooling
- cash ratio, company finance
- cash return to shareholders
- cash surpluses, account balancing
- cat bonds
- CBs see convertible bonds
- CDO see collateralised debt obligation
- CDs see certificates of deposit
- CDS see credit default swap
- central banks
- centralised cash management
- CEO see chief executive officer
- certainty equivalent, investment analysis
- certificates of deposit (CDs)
- CFO see chief financial officer
- CFROI see cash flow return on investment
- CGUs see cash generating units
- chairman of the board role
- change-of-control provisions
- changes in working capital
- chaotic functions
- characteristic line, financial securities
- charges see cost(s)
- chartists
- cheque payments
- chief executive officer (CEO)
- chief financial officer (CFO)
- flexibility
- roles
- strategy
- see also financial manager
- chirographic creditors
- CIB see corporate and investment banking
- Claessens, S.
- clawback
- clearing houses
- CLO see collateralised loan obligation
- closed-end funds
- “closing entries”
- closing rate method, translation
- closure of books
- club deal
- co-leads/managers, banks
- collar, interest rate options
- collateralised debt obligation (CDO)
- collateralised loan obligation (CLO)
- commercial assets
- commercial banks
- commercial base
- tangible assets
- working capital
- commercial currency position
- commercial interest rate risk
- commercial loans
- commercial operations, leverage effect
- commercial paper
- commercial risk
- commitments
- cash flows
- off-balance-sheet
- committees, directors’
- commodities, minimising price of
- commodities markets
- commodity futures markets
- communication policy
- communication strategy, dividends
- companies
- banks relationship
- control over
- financial decisions analysis
- financial world relationship
- legal merger
- loans to
- setting up
- company analysis
- economic
- preference shares
- company cash flows
- company decisions, investors control over
- company growth, working capital
- company human resources
- company law, corporate governance
- company management, market value effect
- company market analysis
- company market positions
- company operating profit
- company operations, market and
- company performance visibility
- company ratios, buy-back impact
- company representation, global
- company sector economics
- company value, lifecycle theory
- comparable companies, sample-building
- comparable method see peer comparison method
- comparative analysis
- comparative approach, multiples
- compensation transparency
- competing takeover bids
- competition
- capital structure of
- company’s market
- corporate strategies
- stability principle
- working capital
- competitive bidding
- complementarity, mergers
- completed contract method, accruals
- compound interest
- comprehensive assessment, abstract data
- concession contracts
- conditional payment of interest
- confidentiality
- confirmed credit lines
- conflict resolution
- corporate governance
- shareholders/creditors
- conflicts of interest
- conglomerate discounts
- conglomerates
- conservatism principle
- consolidated accounts
- cash flow
- leverage effect calculation
- methods
- net assets calculation
- operating profit
- purpose
- revaluing assets
- standard income statement
- technical aspects of
- consolidation-related issues
- consortium formation
- constant amortisation, loans
- constant flow of income
- construction contracts
- construction process finance
- contingent assets
- contingent liabilities
- contingent tax liabilities
- contingent taxation
- continuously compounded interest
- contracting parties, financial systems
- contraction strategy
- contracts
- financial security as
- options
- return set contractually
- standardisation
- unwinding of
- “contracts on contracts”
- contractual payment periods
- contributed assets
- contribution margins, cyclical risks
- contribution of shares
- control
- over borrower
- change-of-control provisions
- over company
- consolidated accounts
- corporate
- dilution of
- of management by debt
- management function combination
- by risk management
- of shareholder changes
- working capital management
- control premium
- conversion period, bonds
- conversion premium
- conversion ratio, bonds
- conversion value, bonds
- convertible bonds (CBs)
- accounting methods
- definitions
- sales of
- theoretical analysis
- convexity measures, bonds
- cooperative companies
- corporate bonds
- corporate control market
- corporate culture
- corporate governance
- definition
- financial theories
- guidelines
- LBO advantages
- recommendations
- value
- corporate income tax
- corporate and investment banking (CIB)
- corporate investment covenant clauses
- corporate managers
- corporate profitability analysis
- corporate purgatory
- corporate risk
- corporate strategy
- corporate structure choice
- corporate value at risk
- corporate ventures
- corporation concept
- correlation coefficients
- diversification
- portfolio risk
- cost(s)
- accruals
- agency theory
- bank loans/bonds
- bankruptcy
- breakeven point
- control measures
- convertible bonds
- financial distress
- income statement formats
- intangible fixed assets
- inventory inclusion
- investments
- margin analysis
- “non-cash”
- personnel
- scissors effect
- share issue
- sunk costs
- see also operating costs; total costs
- cost of capital
- definition
- estimation methods
- implicit calculation
- indirect calculation
- practical applications
- returned to shareholders
- risk of assets and
- see also weighted average cost of capital
- cost-cutting strategies
- cost of debt
- growth rate
- leverage effects
- management control
- tax savings
- cost delays, hedging
- cost of equity
- capital structure policy
- cost of capital distinction
- internal financing
- cost of financing/financing sources
- apparent cost
- internal
- perfect capital market theory
- cost of funds, minimisation
- cost of money
- cost of net debt
- cost overruns, hedging
- cost of refunding bonds
- cost structure effect
- counterparty risk
- coupon mechanics, floating-rate bonds
- coupon payments
- issue price and
- options
- periodicity
- coupon rate, bonds
- coupon reinvestment risk
- covenants
- covered warrants
- creating value see value creation
- creators see entrepreneurs
- credit
- cash flow
- intercompany
- value dating
- credit agreements
- credit-based economy
- credit default swap (CDS)
- credit derivatives
- credit insurance
- credit investors, merger synergies
- credit limits, trade receivables
- credit lines
- credit manager
- credit ratings
- credit risk
- credit scoring principles
- creditor-oriented bankruptcy
- creditors
- behaviour forecasting
- conflict with shareholders
- convertible bonds
- debt cancellation
- increasing risk to
- return required
- seniority of repayments
- share issue
- shareholder conflict resolution
- value and
- Criteo shares, portfolio risk
- cross-border mergers, Europe
- cross default clauses
- crossover bonds
- crowdfunding
- cultural differences, working capital
- cumulative depreciation, fixed assets
- currency for debt
- currency options
- currency risk
- currency transactions
- current assets
- current production capacity
- current rate method, translation
- current ratio, company finance
- current share price
- current shareholders
- sale of shares
- share issue
- share proceeds
- see also existing shareholders
- customer advance payment
- customer behaviour
- customer credit
- customers’ late payment
- cyclical earnings, dividends
- cyclical risk analysis
- cyclical sectors
- data analysis
- data harmonisation
- data for market
- data room
- day-to-day forecasting
- days of finished goods inventory
- days of goods held for resale
- days’ inventory outstanding (DIO)
- days’ payables outstanding (DPO)
- days of raw material, DIO ratio
- days’ sales outstanding (DSO)
- days of work in progress
- DCF method see discounted cash flow method
- DCM see debt capital markets
- DDM see dividend discount model
- deal arrangements, bank’s role
- debit amount, value dating
- debit payment method
- debt
- accounting/market values
- agency theory
- bankruptcy and
- benefits
- breakeven point
- cancellation
- classification
- currency choice
- demergers
- enterprise value and
- equity differences
- financing sources
- flexibility effect on
- increasing
- investors in
- leverage effect of
- management control
- market value added
- options theory
- paying down
- pension liabilities as
- price to earnings ratio
- renegotiating terms of
- repayment
- start-up financing
- tax benefits
- value of
- see also net debt
- debt capital
- debt capital markets (DCM)
- debt covenants
- debt costs
- growth rate
- leverage effect
- management control
- tax savings
- debt cycle
- debt exchangeable for common stock (DECS)
- debt financing
- business risk
- capital employed
- EPS growth
- LBO funds
- lifecycle of company
- mergers and acquisitions
- debt-free companies
- debt instruments
- debt issue, covenant clauses
- debt markets
- debt policy
- cost of equity
- financing through
- implementing
- levers of
- debt products see debt instruments; debt securities
- debt push down
- debt rating downgrade
- debt securities
- marketable
- volatility of
- see also bonds; debt instruments
- debt servicing
- debt structure
- debt warrants
- debt-to-equity ratio
- debt-to-equity swap
- debtholders’ position, underlying asset
- debtor-oriented bankruptcy
- debtors see receivables
- decommissioning sites provisions
- decomposition, underlying asset
- DECS see debt exchangeable for common stock
- deductibility limits, interest
- default risk
- defensive measures
- deferred charges
- deferred income
- deferred payments
- deferred project progress
- deferred redemption period, bonds
- deferred tax assets
- defined benefit plans
- defined contribution plans
- Delaunay, A.-F.
- delisting companies
- delivery potential, contracts
- delivery validation
- delta
- demand, financial securities
- demand deposit account
- demergers
- definition
- principles
- purpose
- depository receipts (DRs)
- deposits, counterparty risk
- depreciation
- assets
- cash flow statement
- fixed assets
- future cash flows
- income statement formats
- operating profit
- ROCE ratio
- depreciation charges, investments
- deregulation
- derivative markets
- futures/options
- importance of
- design, capital structure
- detachment, rights issue
- development capital funds
- development costs
- Dietsch, M.
- dilution
- of control
- criteria
- earnings per share
- entrepreneurs
- goodwill
- profit and losses
- share issue
- valuation by
- DIO see days’ inventory outstanding
- direct cost of capital calculation
- direct finance
- direct method, value of equity
- direct ownership, employee-shareholders
- directors’ board
- directors’ committees
- disaster risk
- “discipline of debt”
- disclosure
- discontinued operations
- discount/discounting
- accounting return rates
- bond redemption
- capitalisation factors
- cascade structure
- cash flows
- conglomerates
- financial securities
- issue discounts
- rights issue
- risk and
- valuation with
- discount rate
- choosing
- inverse proportion
- IRR calculation
- net present value variations
- random events and
- value and
- discounted cash flow (DCF) method
- discounting factor
- discounting rate see discount rate
- disinflation effects
- disintermediation
- disposal agreement see share purchase agreement
- dispute settlement, customer payments
- distress cost
- see also financial distress
- distribution of paper, banks
- distribution policy
- assessment
- dividends
- share buy-backs
- distribution systems
- diversification
- financing sources
- investor base
- by investors
- limitations
- risk premium
- value
- diversified companies
- diversified group organisation
- divestments
- dividend discount model (DDM)
- dividend growth rate
- dividend payments, covenant clauses
- dividend per share (DPS)
- dividend policy
- credibility
- earnings growth
- financing through
- flexibility
- signalling theory
- dividends
- agency theory
- choosing method
- distribution
- equilibrium markets
- financing
- options
- payment methods
- payment received
- payout ratio
- preference shares
- as signals
- yield of
- documentary credit
- documentation
- see also accounting documents; loan documentation
- domiciled bills
- double-voting shares
- DPO see days’ payables outstanding
- DPS see dividend per share
- DRs see depository receipts
- DSO see days’ sales outstanding
- dual listings, behavioural finance
- dual-track process, negotiation
- duration of bond
- duration reduction, payout ratio
- Dutch auction method
- Dutch clause, joint venture agreements
- dynamic analysis, company finance
- earnings
- analysis
- to cash flow
- cash flow statement
- financing choice effects
- normalised
- price to earnings ratio
- retained
- stability
- tax effects
- yield to
- earnings before interest, taxes, depreciation and amortisation (EBITDA)
- cash flow and
- debt repayment
- forecasting
- income statement
- multiples
- operating flows
- value creation
- working capital
- earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR)
- earnings before interest and taxes (EBIT)
- interest coverage ratio
- multiples
- price to earnings ratio and
- see also operating profit
- earnings growth
- beta parameters
- dividend policy
- margin analysis
- earnings per share (EPS)
- all-share transactions
- financing choice effects
- increasing
- share issue
- value creation
- earnings power
- assessment of
- financial analysis
- earnings profile
- earnout clause
- EBIT see earnings before interest and taxes
- EBITDA see earnings before interest, taxes, depreciation and amortisation
- EBITDAR see earnings before interest, taxes, depreciation, amortisation and rent
- ECM see equity capital markets
- economic agents, financial markets
- economic analysis, companies
- economic characteristic, company’s sector
- economic crisis
- capital structure
- LBO market
- economic data, financial analysis
- economic indicators
- economic profit see economic value added
- economic renewal, start-ups
- economic rents
- economic risk
- economic sector, market versus
- economic standpoint
- business combinations
- complex points
- solvency
- “economic upheavals”
- economic value added (EVA)
- economies of scale, cash pooling
- economy
- financial manager’s role
- sensitivity of stock’s sector
- effective annual rate
- effective rate of return
- efficiency see profitability
- efficient markets
- arbitrage
- bankruptcy
- net present values
- P/E principle
- risk-free assets
- risky assets and
- theoretical framework
- EGM see Extraordinary General Meeting
- electronic payment means
- emerging markets
- employee benefits
- employee-shareholders
- employee stock ownership programmes (ESOPs)
- EMTNs see euro medium-term notes
- end customers, distribution systems
- energy, yield of
- ENPV see expanded net present value
- enterprise resource planning (ERP)
- enterprise value
- capital structure
- cost of capital calculation
- debt and
- multiples based on
- value of equity
- entrenchment theory
- entrepreneurs
- financial investors and
- role of
- EPS see earnings per share
- equal instalments, interest rates
- equilibrium
- cash flows
- financial decisions
- growth rate
- equilibrium markets
- corporate governance
- dividends
- share issue
- equity
- book value of
- business risk support
- consolidated accounts
- convertible bonds
- cost of
- debt capital distinction
- debt differences
- destruction of
- financing with
- of losses carried forward
- mandatory convertibles
- options theory
- percentage of
- secondary market
- swaps
- time value of
- see also return on equity; shareholder equity
- equity-accounted investments
- equity affiliate
- equity betas
- equity bridge
- equity capital
- investors in
- market value
- purpose
- real estate financing
- share issue
- start-up financing
- equity capital markets (ECM)
- equity cycle, cash flow
- equity/debt ratio
- “equity in drag”
- equity investors, LBO funds
- equity issuance financing
- equity lines, capital increases
- equity method of accounting
- equity risk premium
- equity securities
- equity value/valuation
- accounting/market values
- book value and
- capital structure
- enterprise value
- equation of
- methods
- multiples based on
- options theory
- reinvested cash flow
- terminal value
- equity value per share
- equity warrants
- ERP see enterprise resource planning
- escrow accounts
- ESOPs see employee stock ownership programmes
- ETFs see exchange-traded funds
- EU see European Union
- euro medium-term notes (EMTNs)
- European-style options
- European Union (EU)
- cross-border mergers
- regulations
- eurozone payment systems
- EVA see economic value added
- event studies, efficient markets
- Example.com case study
- exceptional dividends
- exceptional items
- exceptional rates, reinvestment
- exchange offer
- absorption of company
- acquisitions
- hostile bids
- exchange rate
- cash flow hedges
- forward currency transactions
- translation methods
- exchange ratio, all-share transactions
- exchange-traded funds (ETFs)
- exchangeable bonds
- exchanging shares
- exclusive control, consolidated accounts
- exclusive negotiations
- execution phase, book-building
- exercise date/period, options
- exercise price, options
- existing shareholders
- preference shares
- warrants
- see also current shareholders
- exit clauses, joint venture agreements
- exit strategies, LBOs
- exiting secondary market
- expanded net present value (ENPV)
- expected return/rate of return
- bonds
- cost of capital
- risk and
- security market line
- shares
- value
- expected risk premium
- expected value, investment decisions
- expenditure, cash disbursements and
- expert systems
- explicit cost of debt
- explicit forecast period
- cash flows
- terminal value
- export credit
- export-facilitating organisations
- expropriation effect
- extraordinary shareholders
- extension clause
- external factors, stability principle
- external financing, start-ups
- external growth
- investment analysis
- strategy impact
- externalisation of real estate
- extraordinary dividends
- Extraordinary General Meeting (EGM)
- extraordinary flows
- extraordinary items
- extraordinary shareholders
- face value, bonds
- factoring
- failure risk
- fair value
- financial securities
- markets at
- risk premium
- fair value hedges
- Fama, Eugene
- Fama–French model
- family-owned companies
- see also friends and family investors
- Ferguson, M.
- FFO see funds from operations
- FIFO see first in, first out method
- finance leases
- financial analysis
- defining
- performing
- pitfalls
- as practice
- purpose
- techniques
- without accounting documents
- financial analysts’ treatment
- accruals
- cash assets
- construction contracts
- convertible bonds
- deferred tax assets/liabilities
- dilution profit and losses
- goodwill
- hedging instruments
- impairment losses
- inventories
- leases
- off-balance-sheet
- pensions
- preference shares
- restructuring provisions
- stock options
- tangible assets
- treasury shares
- financial assessment
- financial assets, real asset distinction
- financial breakeven
- financial constraints, real estate
- financial control, management control separation
- financial cost, value creation
- financial criteria
- financing choice
- internal financing
- real estate
- strategy
- value creation
- financial currency position
- financial decisions analysis
- financial difficulties, groups
- financial distress
- financial flexibility
- financial flows, interest rate terms
- financial hedging instruments
- financial holding companies
- financial income, surplus funds
- financial indicators
- financial interest rate risk
- financial investors
- operating/investment cycles
- required rate of return
- roles
- see also investors
- financial leases
- financial management of start-ups
- financial manager
- as “asset dealer”
- as negotiator
- roles
- as salesman
- working capital
- see also chief financial officer; managers
- financial markets
- financing from
- mergers and acquisitions
- value of security
- financial mechanics, business combinations
- financial policy
- see also financing policy
- financial resources
- capital employed
- debt policy
- retained earnings
- see also financing sources
- financial risks
- managing
- measuring
- principles of
- see also risk...
- financial role, financial manager
- financial rules of thumb
- financial securities
- asset value
- attached warrants
- beta parameters
- characteristic line
- concept of
- creation of
- definition
- discounts
- listed companies
- market risk
- net present value
- options theory
- present value
- sales of
- types
- valuing
- financial standpoint
- complex points
- intangible fixed assets
- financial strategy
- financial structure
- beta parameters
- listed companies
- financial sweeteners
- financial systems’ functions
- financial theories
- bankruptcy
- corporate governance
- demergers
- LBOs and
- share issue
- financing
- capital markets
- cash flow
- choice
- distribution systems
- equity capital markets
- linked to asset of firm
- methods
- real estate
- start-ups
- types
- financing cost
- beta parameters
- cost of capital distinction
- minimising
- perfect capital market theory
- see also financial cost
- financing cycle
- earnings and
- movements in cash
- operating and investment cycles relation
- financing policy
- see also financial policy
- financing rounds, start-ups
- financing sources
- banks
- costs
- diversification
- financial markets
- lifecycle of
- mergers and acquisitions
- working capital as
- see also financial resources
- finished goods
- firm analysis
- firm assets
- firm liquidity analysis
- firm underwriting
- firm value see enterprise value
- first in, first out (FIFO) method
- fixed assets
- balance sheet
- capital expenditure comparison
- concepts
- cumulative depreciation
- decrease in value of
- foreign subsidiaries
- investment in
- operating costs distinction
- fixed costs
- fixed-price offering
- fixed rate
- fixed-rate bonds
- flexibility
- capital structure
- debt policy
- dividend policy
- investments
- value of
- floated companies
- floating rate
- floating-rate bonds
- floor rate, interest rate options
- floor underwriting commitment
- floor value, convertible bonds
- flowback
- fluctuation
- interest rates
- underlying asset
- value of security
- forecasting
- beta coefficient
- explicit forecast period
- normative margin
- trend analysis
- forecasting horizons
- foreign currency debt
- foreign exchange (Fx)
- foreign markets
- foreign subsidiaries accounts
- formula approach, portfolio risk
- forward currency transactions
- forward exchange rate
- forward-forward rate
- forward rate agreement (FRA)
- forward transactions
- founder-managers
- FRA see forward rate agreement
- fractals
- Frank, M.
- fraud risk
- free cash flow
- after interest
- liquidity and
- multiples
- schedule of
- terminal value based on
- value additivity rule
- free float shares
- free riders
- free share awards
- free shares
- French, Kenneth
- “friendly” investors
- friends and family investors
- see also family-owned companies
- “frozen” items, operating working capital
- full consolidation
- full listing
- fully diluted EPS
- fundamental valuation method
- funds
- cash
- cost of
- exchange-traded
- “frozen”
- investment of
- leverage effect
- leveraged buyout
- pooling
- transfer of
- working capital
- funds from operations (FFO)
- funds of funds
- future cash flows
- future contracts
- future markets standardisation
- future prices/rates, locking in
- future profits
- future spreads, option on
- future transactions impact
- futures markets
- Fx see foreign exchange
- gamma, underlying asset
- “Gaussian” distribution
- GCE see gross capital employed
- GDRs see global depository receipts
- general meetings
- “glamour” divisions
- global approach, peer comparison method
- global coordinator, banks
- global depository receipts (GDRs)
- global vision
- going-concerns
- “golden parachutes”
- golden shares
- goods see finished goods
- goodwill
- accounting methods
- leverage effect calculation
- net assets
- start-ups and
- tax and
- translation methods
- value of
- goodwill impairment
- Gordon–Shapiro formula
- governance see corporate governance
- government bonds
- governments as shareholders
- Goyal, V.
- Graham, J.
- Greek-style payment periods
- green bonds
- greenshoe
- grey market
- gross capital employed (GCE)
- gross fixed assets
- gross goodwill figures
- gross margin
- gross operating profit see earnings before interest, taxes, depreciation and amortisation
- gross trading profit
- group assets and liabilities
- group cash management
- group debt
- group diversification
- group equity
- group share net income
- group strategies
- growing perpetuity
- growth drivers, mergers/acquisitions
- growth of earnings and revenues
- growth potential
- growth rate
- capital structure
- dividends
- internal financing
- models of
- operating profit
- to perpetuity
- growth stocks
- growth strategies
- growth types
- company growth
- markets
- operating profit
- guarantees
- asset-backed loans
- bonds
- IPOs
- parent companies
- receivables payment
- Gurley, John
- Hamon, J.
- hard currencies
- harmonising accounting data
- Harvey, C.
- hedge funds
- hedging
- futures/options
- investor’s behaviour
- risk/risk management
- hedging instruments
- Heineken shares
- herd behaviour
- hidden options
- high-quality products
- high yield bonds
- historical cost
- historical factors, working capital
- historical rate of return
- historical risk premium
- holding companies
- asset contribution
- cascade structure
- discounts
- leveraged buyout
- holding-period return
- homogeneous expectations
- “horizon multiple”
- hostile offers
- human factor, mergers/acquisitions
- human resources
- hybrid bonds
- hybrid financial securities
- hyperinflationary countries
- IASB see International Accounting Standards Board
- IBR see independent business review
- ICR see interest coverage ratio
- identified purchase cost method, inventories
- idiosyncratic risk
- IFRS rules
- listed companies
- translation methods
- illiquidity risk
- immunised portfolio
- impairment losses
- accounting methods
- cash flow statement
- consolidated accounts
- definition
- EBITDA
- fixed assets
- operating profit
- implicit interest rates
- implied volatility, options
- in the money options
- incentives
- income capitalisation
- income deferred
- income flow, constant
- income from associates
- income from bonds
- income level, value creation
- income statement
- cash flow statement differences
- consolidated accounts
- deferred tax assets/liabilities
- direct finance
- EBITDA importance
- format differences
- forward rate agreement
- inventory changes
- leverage effect
- operating costs
- standard
- value added
- income stock
- income tax
- incremental flows
- definition
- reason in terms of
- independent board role
- independent business review (IBR)
- “independent director”
- independent value, control premium
- index-linked securities
- index trackers
- indirect cost of capital calculation
- indirect finance
- indirect method, value of equity
- individual accounts
- industrial assets
- industrial and commercial base
- industrial companies see industrial organisations
- industrial investments, real options
- industrial investors
- industrial managers
- industrial markets
- industrial operations, leverage effect
- industrial organisations
- industrial risk
- industrial strategy
- industrial synergies
- inertia effects
- inflation
- bank-based economies
- capital structure and
- foreign subsidiaries
- growth rate to perpetuity
- hyperinflationary countries
- index-linked securities
- inventories and
- leverage effect
- stability principle
- inflation profits
- inflation risk
- inflows
- information asymmetry
- information circulation
- information provision
- information systems, financial analysis
- information technology (IT)
- informational mimicry
- initial public offerings (IPO)
- creation of
- discount
- execution of
- LBO exit
- preparation
- sizing
- success of
- techniques
- underpricing
- workings of
- innovation
- inside shareholders
- instalments, interest rates
- institutional investors
- insurance
- intangible assets
- intangible fixed assets
- integration strategies, value chain
- intercompany agreements, cash management
- intercompany credit
- interest
- capitalisation
- deductibility
- free cash flow after
- interest-bearing accounts
- interest charges, breakeven point
- interest coverage ratio (ICR)
- interest payments
- interest rate(s)
- bonds
- capital structure policy
- CIB access
- earnings impact
- effective annual
- financial mathematics
- fluctuation
- inflation
- level of
- leverage effect
- locking in
- maturities relationship
- net present value
- P/E principle
- subordinated creditors
- term structure
- value of net debt
- interest rate options
- interest rate risk
- interest rate swaps
- interim dividend
- interim facility agreements
- intermediation
- internal capital market
- internal controls/procedures, risk management
- internal financing
- additional analysis
- financial criteria
- taxation and
- value creation
- internal growth models/strategies
- internal rate of return (IRR)
- bonds
- cost of capital
- determination of
- as investment criterion
- limitations
- International Accounting Standards Board (IASB)
- international cash management
- international financial organisations
- intra-group transactions
- intrinsic risk
- intrinsic value
- IPO success
- market value and
- options
- inventories
- accounting methods
- balance sheet
- changes in
- definition
- inflation effects
- management
- transfer to
- turnover ratio
- valuation methods
- value overstatement
- working capital
- inverse P/E
- inverse proportion
- discounting rate
- value of option
- invested capital
- investment(s)
- in associates
- balance sheet
- cash assets
- cash balances
- cash flow perspective
- costs
- covenant clauses
- criteria
- earnings generated by
- effective annual rate
- external growth and
- financing
- IRR as criterion
- liquidity of
- negative capital employed
- net present value
- options and
- portfolio risk
- timeframe
- unconsolidated/equity-accounted
- value and
- value change
- wealth creation
- working capital as
- see also return on investment
- investment analysis, risk
- investment banks
- investment choices
- financing influence
- NVP indicator
- value creation
- investment cycle
- investment decisions
- conventional approaches
- cost of capital application
- options theory
- investment flows
- investment of funds method
- investment grade bonds
- investment grade ratings
- investment outflows
- investment policy analysis
- investment products
- with secondary market
- without secondary market
- investment risk
- investment value
- convertible bonds
- return on
- investment yield
- investor base, diversification
- investor behaviour
- investor perception, real estate value creation
- investor protection, required rate of return
- investor risk
- adjustment
- cost of financing sources
- information provision
- issue discounts
- market-based economies
- investors
- business plan use
- control over company decisions
- in debt
- defensive measures
- discounts
- diversification
- efficient markets
- entrepreneur relationships
- in equity capital
- information provision
- IPO success
- IPO underpricing
- merger synergies
- P/E and
- return required by
- role of
- share proceeds
- signalling theory
- start-up role
- yield to maturity
- see also financial investors
- invoice payment approval
- IPO see initial public offerings
- IRR see internal rate of return
- irrevocable change, real options
- issue date, bonds
- issue discounts
- issue price, bonds
- issue of securities
- issue of shares
- issuers, yield to maturity
- IT see information technology
- Jacquillat, B.
- Jagannathan, M.
- Jensen, M.
- joint-leads, banks
- joint ventures
- junior debt
- labour risk
- large shareholder, company without
- last in, first out (LIFO) method
- LBO see leveraged buyout
- LBU see leveraged build-up
- lead manager, banks
- lease rights
- leases
- legal action
- legal framework, shareholders
- legal merger
- legal protection, corporate structure
- legal risks
- legal structure
- listed companies
- mergers and acquisitions
- lenders
- to companies
- internal financing
- LBO funds
- restructuring plans
- letter of intent (LOI)
- level of control, consolidation
- leverage effects
- calculation
- capital structure
- cost of capital
- cost of debt
- enterprise value
- equation formulation
- financing and
- futures/options
- margin analysis
- practical problems
- presentation
- principle of
- risk management
- usefulness
- uses/limitations of
- leveraged build-up (LBU)
- leveraged buyout (LBO)
- company managers
- employee-shareholders
- financial theory
- funds
- larger context
- market
- negotiating strategy
- players
- principle
- private equity funds
- structures
- transactions
- types
- warrants
- (leveraged) management buyout ((L)MBO)
- leveraged recapitalisation
- liabilities
- balance sheet
- bankruptcy
- consolidated accounts
- deferred
- financing sources cost
- illiquidity risk
- legal merger
- maturity structure
- negotiation and
- off-balance-sheet
- option theory
- pensions as
- shareholders
- licensing offers, real options
- lifecycle of company
- lifecycle of financing sources
- lifecycle theory, company value
- LIFO see last in, first out method
- limited companies
- limited liability
- limited share partnerships (LSPs)
- liquid funds, foregoing
- liquidation of assets
- liquidation value, SOTP method
- liquidity
- analysing
- balance sheet
- cash investment
- centralisation of
- consideration of
- financing choice effects
- of investments
- lack of
- listed companies
- market data
- markets
- secondary market
- shares
- standardisation of contracts
- working capital
- liquidity crisis
- liquidity discount assessment
- liquidity flows estimation
- liquidity preference theory
- liquidity premium
- liquidity ratios
- liquidity risk
- listed companies
- capital increases
- capital markets
- consolidated accounts
- control change
- corporate governance
- IPOs
- minority interests
- preference shares
- ROCE for
- ROE for
- shareholder structure
- taking over
- working capital
- listed contracts
- listing
- bonds
- shares
- subsidiaries
- (L)MBO see (leveraged) management buyout
- loan documentation
- loans
- amortisation
- asset-backed
- banks
- bonds and
- to companies
- convertible bonds and
- corporate risk
- principal amount of
- real estate backing
- see also business loan types; syndicated loans
- lock up commitment
- locked-box system
- locking in future prices/rates
- logistics
- LOI (letter of intent)
- long form report (vendor due diligence)
- long positions
- long-term bonds
- long-term financial resources
- long-term marketable securities
- long-term rates
- liquidity premium
- maturities
- long-term ratings
- lookback options
- loss-making companies
- loss probability risk
- losses
- capital
- carried forward
- deferred tax assets/liabilities
- see also impairment losses; profit and loss
- love money
- loyalty, shareholders
- LSPs see limited share partnerships
- M&A see mergers and acquisitions
- MAC see material adverse change
- macroeconomic factors
- majority shareholders, listed companies
- management accounting approach
- management buy-in (MBI)
- management companies, LBO funds
- management compensation transparency
- management control
- combination
- debt
- financial control separation
- management incentive package
- management-incentivisation tools
- management reputation
- management strategy, definition
- management team motivation
- managerial entrenchment
- managers
- character importance
- internal financing
- LBO company
- minority shareholder as
- role in value creation
- share issue
- trade receivables
- warrant benefits
- working capital management
- see also corporate managers; entrepreneurs; financial manager
- mandated lead arrangers (MLAs)
- mandatory convertibles
- mandatory offers
- Mandelbrot’s assumptions, fractals
- MAR see market abuse regulations
- margin analysis
- margin calls
- marginal return, retained earnings
- margins
- profitability distinction
- ROCE calculation
- working capital
- market
- bonds
- corporate control
- definition
- efficient markets
- key data
- leveraged buyout
- strategic position in
- see also financial markets
- market abuse regulations (MAR)
- market authority role
- market-based economies
- market-based relationship, supplier/company
- market capitalisation
- market changes
- bankruptcy
- risk linked to
- market choice, IPOs
- market criteria, value creation
- market data, cost of capital
- market economies see market-based economies
- market in equilibrium theory
- market growth
- market independence, SOTP method
- market indicators
- market leverage
- see also leverage effects
- market logic
- market multiples
- market portfolio
- market positions, risk
- market rates, bonds and
- market risk
- hedging
- position/measurement of
- value and
- market scope, company control
- market segmentation
- market share
- market supervisory authorities
- market theory, perfect capital
- market value
- book value and
- capital employed
- company management effect
- cost of financing
- equity capital
- equity/debt
- fair value
- financial securities
- financing sources
- goodwill
- intangible fixed assets
- intrinsic value and
- investments
- solvency
- SOTP method
- underlying asset
- market value added (MVA)
- marketable debt securities
- marketable securities
- marketing campaigns
- mass production
- master credit agreement
- matching hypothesis
- material adverse change (MAC)
- mathematical approach, risk assessment
- mathematical hope concept
- maturities/maturity
- cash flow value
- choosing
- debt
- futures
- interest rate relationship
- yield to
- maturity of bonds
- maturity of company
- payout ratio
- real-estate financing
- maturity mismatch, illiquidity risk
- maturity of options
- maturity structure
- illiquidity risk
- liabilities
- maximum rise assessment
- MBI see management buy-in
- mean value multiples
- measures of stock market value creation
- Meckling, W.
- median value multiples
- medium-term financial resources
- medium-term returns, investments
- memorandum of understanding (MOU)
- merger synergies
- mergers
- mergers and acquisitions (M&A)
- CIB advice service
- larger context
- price to earnings ratio
- rise of
- Merton, Robert
- meteorological anomalies
- mezzanine debt
- microeconomic factors
- Miller, M.
- mimicry
- minimum-price offering
- minority discount
- minority interests/shareholders
- control premium
- equity
- IPOs
- listed companies
- managing shareholder
- net assets
- operating profit
- provisions
- stock exchange protection
- minority managing shareholder
- MIRR see modified IRR
- mixed offers
- MLAs see mandated lead arrangers
- model risk, options
- modern financial theory, demergers
- modified duration
- bonds
- parameters influencing
- modified IRR (MIRR)
- Modigliani, F.
- Modigliani–Sutch theory
- monetary items, temporal method
- monetising
- money-market funds
- money, time value of
- Monte Carlo simulation
- mortgage loans
- motivation, management team
- MOU see memorandum of understanding
- multifactor models
- multinational companies
- multiple IRR
- multiple shares
- multiple voting rights shares
- multiples method
- menu of
- minority interests
- peer-group comparisons and
- pensions
- terminal value
- multiplier effect
- MVA see market value added
- OBO see owner buyout
- off-balance-sheet commitments
- offerings
- certainty of
- purpose of
- retail investors
- types
- see also initial public offerings
- OGM see Ordinary General Meeting
- old shareholders see current shareholders
- one-tier board of directors
- ongoing needs, permanent working capital
- operating activities, cash flow from
- operating assets
- see also capital employed
- operating breakeven
- operating cash flow
- operating costs
- operating cycle
- assets
- capital employed
- cash flow
- earnings
- working capital
- operating flows
- operating leases
- operating leverage
- operating margin
- operating multiple
- operating outflows
- operating performance
- operating profit
- allocation
- company’s
- EPS relative to
- formation
- growth rate
- income statement formats
- leverage effect
- multiples
- ratio to capital employed
- see also earnings before interest and taxes
- operating revenues
- operating risks
- operating structure, listed companies
- operating working capital
- operational constraints, real estate
- operational opportunities
- operational real estate
- operational subsidiaries
- operations, company
- opportunity cost
- opportunity principle
- optimal capital structure
- optimal cash management
- optimal date, start-ups
- optimal debt ratio
- option to abandon
- option on future spreads
- option models, start-up date
- option-pricing models
- option premium, insurance
- option value, convertible bonds
- options
- analysing
- definition
- derivative market
- insurance and
- position management
- stock
- theoretical foundations
- time value
- value parameters
- warrants and
- see also real options
- options on options
- options theory
- financial decisions analysis
- financial securities
- firm analysis
- practical applications
- valuation of equity
- order book, IPO creation
- ordinary dividends
- ordinary full listing
- Ordinary General Meeting (OGM)
- ordinary shareholders
- ordinary shares
- organic growth, internal financing
- organisation theories
- organised markets, OTCs
- original equipment, market risk
- OTC markets see over-the-counter markets
- out of the money options
- outflows
- balance sheet
- financing
- investment and operating
- outlook rating
- outside shareholders
- outsourcing
- over-the-counter (OTC) markets
- overdrafts
- overlay banks
- overpayments, investments
- overproduction problem
- overstatement, inventories’ value
- owner buyout (OBO)
- ownership level, consolidation
- P&L see profit and loss
- P-to-P see public-to-private
- P/E see price to earnings ratio
- Pac-Man defence
- “paper”
- see also financial securities
- paper distribution by banks
- paper payment means
- parent company
- consolidated accounts
- dilution profit and losses
- parent company guarantee (PCG)
- pari passu clauses
- participating preference share
- past prices, efficient markets
- past situations, breakeven point
- patents
- path of wealth (POW)
- pay-to-play clause
- payables, managing
- payback period, investments
- paying agents
- payment in advance
- payment amount
- payment in cash, mergers/acquisitions
- payment clauses, dividends
- payment means/methods
- dividends
- financial systems
- impact of
- trade receivables
- payment periods
- receivables
- trade payables
- working capital
- payment received, dividends
- payment in shares
- payment speed, receivables
- payment systems, eurozone
- payment terms
- payout ratio
- PBO see projected benefit obligation
- PBR see price to book ratio
- PCG see parent company guarantee
- pecking order theory
- peer comparison method
- penalties
- pensions
- percentage of completion method, construction contracts
- percentage control, consolidation
- percentage interest
- PERCS see preferred equity redemption cumulative stock
- perfect capital markets theory
- performance bonds
- periodicity of coupon payments
- “permanent financing”
- permanent working capital
- perpetuity
- personal taxes
- personnel cost/expense
- pivoting shift, risk premium
- poison pills see strategic assets
- political risk
- pooling funds
- portfolio diversification
- portfolio management
- bonds
- options
- risk premium
- portfolio risk
- position, risk management
- positive cash balance
- positive covenants
- postponement of project
- POW see path of wealth
- power balance, working capital expressing
- power distribution structure
- power of shareholders
- PPA see purchase price allocation
- pre-emption rights, shareholder changes
- pre-emptive action
- pre-emptive subscription rights
- pre-marketing period, book-building
- preference shares
- preferential dividend
- preferred equity redemption cumulative stock (PERCS)
- preferred habitat theory
- preferred shares see preference shares
- premium
- convertible bonds
- minority discount and
- options
- valuation with
- see also risk premium
- prepaid costs
- prepaid interest, bonds
- present value index (PVI)
- present value (PV)
- calculation simplifications
- cash flows
- discounting
- financial securities
- tax savings
- see also net present value
- price
- arbitrage
- commodities
- company value
- effects
- exercise price
- financial securities
- issuance of bonds
- negotiating
- options
- security issue
- selling price maximisation
- underlying asset
- price to book ratio (PBR)
- price-driven competition
- price to earnings ratio (P/E)
- all-share transactions
- EPS growth
- investors and
- principle of
- startups
- value creation
- price increase analysis
- price information, financial systems
- price volatility, stock risk
- primary market, financial securities
- principal amount, loans
- priority periods, issue of shares
- private auctions
- private companies, stock exchange
- private equity funds
- private equity sponsors
- private negotiation, control over company
- private placements
- pro forma statements
- probability distribution
- process-specific production
- product-driven competition
- product lifecycle
- product trends
- production
- company’s market
- in income statement
- margin analysis
- production capacity
- production models
- production policy clauses
- productivity, personnel cost
- profit
- decreasing
- fast growth
- inflation
- see also operating profit
- profit before tax and non-recurring items
- profit and loss (P&L)
- “adjusted income”
- capital employed
- dilution
- see also income statement
- profit-generating capacity
- profitability
- analysis
- bankruptcy and
- competition and
- EBIT multiple
- leverage effect
- margins distinction
- standard plan
- structural
- value creation
- profitability divisions
- profitability indicators
- profitable investments
- program trading, mimicry
- project financing
- project-type organisation
- projected benefit obligation (PBO)
- promised return, bonds
- promissory notes
- property investors
- property, plant and equipment see tangible fixed assets
- proportional rates, interest
- proportionate method, consolidated accounts
- provisions
- for decommissioning/restoration of sites
- employee benefits/pensions
- not tax-deductable
- restructuring
- for valuation
- prudence principle
- psychology
- public offerings
- public tender offers
- public-to-private (P-to-P)
- purchase method, goodwill
- purchase price allocation (PPA)
- purchases
- DPO ratio
- operating costs
- recession conditions
- “pure-play” companies
- put-call parity
- put options
- capital employed
- exercise price
- put warrants
- PV see present value
- PVI see present value index
- Pythagoras’s theorem
- qualified institutional buyers (QIBs)
- quick ratio, company finance
- R&D (research and development) costs
- random events response
- random walk returns
- ranking hybrid bonds
- ratchet clause, shareholders’ agreement
- rate of return
- accounting
- book rates
- capital employed
- cost of capital
- creditors/shareholders
- discounting
- financing sources
- internal
- shares
- start-ups
- value and
- see also required rate of return
- rate tunnel
- rating agencies
- ratings
- financial analysis
- impact of
- role of
- ratio analysis
- company finance
- limits of
- profitability
- scoring techniques
- working capital
- ratios
- all-share transactions
- buy-back impact
- credit scoring
- raw materials
- days of
- inventory changes
- operating breakeven
- RCF see revolving credit facility
- real estate
- equity capital finance
- financial criteria
- financing choice
- managing
- organisation ideals
- standard loan backing
- value creation
- real estate investment trusts (REITs)
- real versus financial assets
- real options
- categories
- contribution of
- evaluating
- value of
- young companies
- reasoning/reason
- main lines of
- personal taxes
- in terms of cash flows
- in terms of incremental flows
- in terms of opportunity
- Recasens, G.
- receipt of money
- receipt timing
- receivables
- balance sheet
- DSO ratio
- managing
- payment speed
- see also payment received
- recessions
- recommended offers
- recurrent items
- redeemable warrants
- redemption
- bonds
- cash investment
- mandatory convertibles
- redemption premium
- redemption value, bonds
- refunding bonds
- regressions, multiples
- regulations, summary
- regulatory changes
- regulatory protection
- regulatory risk
- regulatory threshold disclosure requirements
- reinsurance market
- reinvested cash flow
- reinvestment rate
- REITs see real estate investment trusts
- relative value ratio
- reminders for payment
- remuneration, creditors
- rent to turnover ratio
- rents, operating leases
- repayment terms
- loan amortisation
- seniority of
- replacement cost basis, inventories
- replacement products
- replicated capital structure
- replicating portfolio, options
- reporting period, capital employed at start of
- Repos see repurchase agreements
- representations, negotiation
- repurchase agreements (Repos)
- repurchase of shares
- reputation of management
- required rate of return
- capital employed
- creditors/shareholders
- financing sources
- reratings
- resale of goods
- research and development (R&D) costs
- reserved share issues
- residual risk determination
- residual value, cash flows
- resolving conflicts
- resources, companies
- restoration of sites
- restrictive covenants
- restructuring
- bankruptcy and
- banks
- breakeven point
- capital expenditure and
- plans
- provisions
- retail banking
- retail investors
- retail public offering
- retained earnings
- return
- risk and
- sales of securities
- set contractually
- see also rate of return
- return on capital employed (ROCE)
- “cash flow fade” method
- growth rate
- as investment criteria
- value creation
- return on equity (ROE)
- bank charges
- financing choice effects
- internal growth
- value creation
- return on investment
- capitalisation
- cash flow
- definition
- financing sources
- financing types
- perfect capital market theory
- value
- revaluing assets
- revenues
- growth of
- margin analysis
- scissors effect
- stability principle
- see also operating revenues; total revenue
- reverse cash flow statement
- reverse factoring line
- review phase, book-building
- revolving credit
- revolving credit facility (RCF)
- right of approval, shareholder changes
- rights issue
- rights management, cash flows
- risk
- adjustments by investor
- all-share transactions
- of assets
- asymmetry of
- capital employed
- cost of capital
- credit risk
- debt securities
- definition
- discounting and
- distribution systems
- equity supporting
- of failure
- financial securities
- hedging
- identification
- illiquidity
- increasing
- investment analysis
- investor’s
- leveraged buyout
- liquidity
- liquidity flow estimation
- margin analysis
- mergers and acquisitions
- model risk of options
- operating assets
- option value
- real estate acquisition
- shareholders’
- sources of
- start-ups
- strategies
- subordinated creditors
- syndicates
- types
- value and
- working capital as
- see also market risk; operating risks
- risk-analysis variance
- risk assessment
- through business plan
- conventional analysis
- through mathematical approach
- risk-free assets
- risk-free environment, maturities
- risk-free rate
- CAPM application
- options
- required rate of return
- risk levels, operating assets
- risk management
- financial systems
- overview
- principles
- steps
- risk manager role
- risk premium
- risk profile, financing sources
- risk and return
- risk/reward requirements, investors
- ROCE see return on capital employed
- ROE see return on equity
- Ross, Stephen
- rounds of financing, start-ups
- Rountree, B.
- rules of thumb
- safety stocks
- sale and leaseback
- sale of shares
- sale to trade buyer
- sales contraction impact
- sales days, working capital
- sales of financial securities
- sales growth
- margin analysis
- working capital and
- sales levels, recession
- sales multiple
- sales percentage, breakeven point
- sales trends, operating profit
- sales valuation, companies
- salesman role
- salvage value (residual value)
- sample-building, comparable companies
- scenario analysis
- schedule of future cash flows
- Scholes, Myron
- scissors effect
- scope of consolidation
- scoring techniques
- scrip dividend
- seasonal business activity
- second lien debt
- “secondary” LBOs
- secondary market
- bonds
- cash investment
- financial securities
- function of
- with investment products
- investment products without
- sector concept
- securities see financial securities
- securitisation
- securitisation vehicles
- security, cash investment
- security market line
- segmentation of markets
- self-hedging
- self-mimicry
- sell options see put options
- sellers
- leveraged buyout
- options
- share considerations
- selling price maximisation
- semi-strong efficient market
- senior debt
- seniority of repayments
- sensitivity
- analysis
- maturity of bonds
- stock’s sector
- SEPA see Single Euro Payment Area
- separation theorem
- service-dominated economy
- service rate
- inventories
- stockout avoidance
- services and advice
- setting up companies
- setting up payments
- settlement date, bonds
- shadow rating
- share buy-backs
- share exchange
- absorption of company
- acquisitions
- share issue
- accounting criteria
- borrowing capacity
- definition
- dividends
- finance theory
- goodwill
- liquidity and
- reserved
- as signal
- share prices
- bonds
- liquidity
- listed companies
- random walk returns
- rights issue
- share purchase, hostile bids
- share purchase agreement (SPA)
- share warrants see warrants
- shareholder base
- see also shareholder structure
- shareholder equity
- acquisitions
- balance sheet
- book profitability
- capital employed
- company finance
- consolidated accounts
- earnings and
- financial cycle
- increasing
- ratio to net income
- roles of
- solvency
- valuation methods
- shareholder-managers
- shareholder position, underlying asset
- shareholder return
- cash
- cost of capital
- creditor comparison
- shares
- see also total shareholder return
- shareholder structure
- see also shareholder base
- shareholder wealth, equilibrium markets
- shareholders
- all-share transactions
- capital structure
- cash provision
- changes
- convertible bonds
- creditor conflict
- as defence measure
- demergers/split-offs
- dividend demands
- financing companies
- internal financing
- listed companies
- operating assets
- options
- power at general meetings
- preferences
- real-estate financing
- risk accruing to
- sale of shares
- share issue
- share proceeds
- strategies
- types
- value and
- voting caps
- warrants
- shareholders’ agreement
- shares
- acquisitions
- all-share deals
- allocation of
- basic concepts
- block trades
- bonds exchangeable with
- cancellation of
- classes of
- contribution of
- delta
- dividend paid in
- double voting rights
- IPO size
- limited companies
- listing techniques
- offerings
- one share one voting right
- paying in
- payment amounts
- preference
- repurchase of
- stake-building
- treasury
- see also hybrid financial securities
- Shaw, Edward
- Shleifer, A.
- Shockley, R.
- short positions
- short-sightedness
- short-term investments
- short-term marketable securities
- short-term rates
- liquidity premium
- maturities
- short-term ratings
- short-term resources
- shotgun clause (Dutch clause)
- signalling theory
- bankruptcy
- dividends
- IPO underpricing
- share issue
- significant change, real options
- significant influence, consolidated accounts
- Single Euro Payment Area (SEPA)
- size premium
- small-and-medium-sized enterprises (SMEs)
- socially responsible bonds
- “soft call” clause
- soft currencies
- solvency
- consolidated accounts
- financing choice effects
- solvency checks, trade receivables
- solvency-and-liquidity analysis
- solvency opinion, LBOs
- solvency risk
- SOTP method see sum-of-the-parts method
- sovereign spread
- sovereign wealth funds
- SPA see share purchase agreement
- special dividend
- special-purpose vehicle (SPV)
- specific risk
- speculation
- investor’s behaviour
- valuation
- working capital
- speculative bubbles
- speculative grade ratings
- spending money
- Spindt, P.
- “split accounting”
- split-offs
- spreads
- SPV see special-purpose vehicle
- squeeze-outs
- stability principle
- stake-building, takeovers
- standalone value, control premium
- standard deviation
- risk-analysis
- risk-free assets
- volatility and
- standard financial analysis plan
- standard income statements
- standardisation of contracts
- staple financing
- start-up costs
- start-up date, option models
- start-ups
- financial management
- financing
- investors in
- real case example
- static analysis
- steady business, working capital
- stock
- balance sheet analysis
- beta coefficient
- management
- rebalancing
- see also shares
- stock exchange
- IPO success
- private companies
- protecting minority interests
- stock market analysis
- stock market value see market value added
- stock markets
- discount size
- listed companies
- yield on
- stock options
- accounting methods
- corporate governance
- definition
- dividend impact
- employee-shareholders
- human resources
- stock-picking
- stock risk
- stock sector sensitivity
- stockouts
- strategic analysis
- breakeven point
- value and
- strategic assets
- strategic finance
- strategic position
- company’s market
- margin analysis
- strategic value, control premium
- strike options
- strike price, underlying asset
- strongly efficient market
- structural measures, inventory management
- structural profitability
- structural stocks
- subdividing capital
- subordinated creditors
- subordinated debt
- subprime crisis
- subscription rights
- capital increase
- definition
- detachment of
- theoretical value calculation
- subscription warrants
- subsidiaries
- cascade structure
- cash pooling
- consolidated accounts
- dilution profit and losses
- dividend payments
- listing
- real estate
- split-offs
- substance of company
- “substance over form” analysis
- sum discount
- sum-of-the-parts (SOTP) method
- sunk costs
- super-profit
- supervision, signalling theory
- supplementary financing, start-ups
- supplier credit
- supplier payment periods
- supplier payment terms
- supplier relationship
- supply, financial securities
- surplus funds
- sustainable value
- swap points, forward currency
- swaps
- swaptions
- “sweeteners”
- syndicated loans
- syndicates
- synergies
- control premium derivation
- mergers
- mergers and acquisitions
- synthetic bonds
- systematic risk
- take or pay contracts
- take and pay contracts
- takeover bids
- agency theory
- conglomerate discounts
- defensive measures
- listed companies
- regulations
- shareholding
- warrants and
- see also hostile offers; tender offers
- tangible assets
- tangible fixed assets
- target companies, leveraged buyout
- targeted investors, sales of securities
- tax assets
- tax benefits
- tax consolidation, LBOs
- tax credits
- tax-deductible provisions
- tax expense/credit, leverage effects
- tax-free environment, capital structure
- tax implications, SOTP method
- tax-loss carryforwards
- “tax proofing”
- tax savings, present value
- tax shield
- taxation
- consideration of
- deferred tax assets/liabilities
- internal financing and
- real estate
- share buy-backs
- value and
- technical factors
- adjusting per share data
- working capital and
- technical know-how, valuing
- temporal method, translation
- temporary difference, deferred tax assets/liabilities
- tender offers
- term loans
- term sheet, syndicated loans
- term structure, interest rates
- terminal capital
- terminal value
- explicit forecast period
- reinvestment rate
- theoretical ex-right price (TERP)
- theory of segmentation see segmentation of markets
- theta, options
- thresholds, control of company
- time deposits
- time impact, options
- time remuneration
- time value
- equity
- of money
- options
- postponed projects
- real options
- timeframe, investments
- timing difference
- deferred tax assets/liabilities
- operating costs
- operating and investment cycles
- timing of receipts
- top-down approach, portfolio management
- total breakeven
- total costs, total revenue covering
- total debt service
- total return swaps
- total revenue covering total costs
- total shareholder return (TSR)
- trade buyers
- trade credit
- trade-off model
- trade payables
- trade receivables
- traders
- as speculators
- warrants traded separately
- trading multiples
- trading profit
- trading volumes, efficient markets
- transaction costs, efficient markets
- transaction facilitation
- transaction multiples
- transaction risk
- transaction volumes, capital markets
- transactions
- financial sweeteners
- valuation errors
- transfer of funds
- transfer to inventory, income statement formats
- transfer of value, bankruptcy
- translation methods, foreign subsidiaries
- transparency
- treasurer’s role
- cash management
- debt policy
- treasury bills
- treasury method, warrants
- treasury notes
- treasury shares
- trend analysis
- true financial cost
- trust preference share
- TSR see total shareholder return
- turnaround funds
- turnover ratios
- limitations
- rent to
- ROCE calculation
- working capital
- two-tier board of directors
- two-tiered holding companies
- unallocated bank loans
- uncertainty
- liquidity flow estimation
- payment methods
- real options
- value creation
- value of security
- uncertainty profile, Monte Carlo simulation
- unconsolidated investments
- “unconventional” cash flows
- underlying asset
- maturity
- options
- value of
- underpricing IPOs
- underwriting
- underwritten deal
- undiversifiable risk
- United States see US...
- unitranch debt
- unlevered beta (beta assets)
- unlimited companies
- unlisted companies
- unsolicited offers
- unwinding of contracts
- US income statement formats
- US listings, non-US companies
- US-style options
- “used” financial products
- WACC see weighted average cost of capital
- waivers, debt issue
- warehousing (nominee) agreements
- warranties
- warrants
- defensive measures
- definition
- existing shareholders
- practical uses
- restructuring plans
- share buy-backs
- shareholder position
- theoretical analysis
- value
- watchlist, rating agencies
- weak-form efficient market
- wealth
- additions to
- creation
- deductions from
- dividends modifying
- weighted average cost of capital (WACC)
- weighted average cost method
- weighted average PVI
- “white knight” takeover bids
- wide-capitalisation market indexes
- Wilson formula
- work in progress
- working capital
- aspects of
- calculating
- capital expenditures
- case study
- changes in
- definition
- evaluating
- financing
- investment in
- managing
- nature of
- non-operating
- operating
- turnover ratios
- workshop model organisation
- write-backs
- write-downs
- year-to-year change, working capital
- yield curves
- yield of dividends
- yield to earnings
- yield of energy
- yield to maturity
- yield stocks
- young companies see start-ups
- Z-scores
- zero balance account (ZBA)
- zero cash
- zero-coupon bonds
- zero-coupon loans
- zero net debt
- zero NPV
- zero-sum game
- Zeta score
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