Index
abandonment risk
ABB
ABCP see asset backed commercial paper
Abertis
ABN-Amro
abnormal returns
Abu Dhabi
accounting
acid test ratio see quick ratio
additive valuation methods
see also sum-of-the-parts...
Adia
adjustable rate preference shares
Africa
agency theory
AGF
agreements in principle
AIG
Air France
Air Liquide
Alcan
Alcatel
Alitalia
Allianz
Altman, Edward
amortization
annuities
AOL–Time Warner merger
APV method
arbitrage pricing theory
Arcelor
articles of association
asset backed commercial paper (ABCP)
asset turnover ratio
assets
associated companies
AstraZeneca
at-the-money options
auditors' reports
audits
Autostrade
average strike options
B&S see Black and Scholes option pricing model
bad debts
balance sheets
Bangladesh
bank overdrafts
bankruptcies
banks
see also debt finance; institutional investors; securitization
bond offerings
business loans
cash flow management
commercial loans
competition
covenants
credit lines
investment banks
IPOs
loans
Barclays Bank
Basel II requirements
bear markets
Bear Sterns
behavioural finance
Belgium
beta coefficient
bid–ask spreads
bills of exchange
BIMBOs
binomial models
Black and Scholes option pricing model (B&S)
block trades of shares
BNP Paribas
boards of directors
bonds
see also convertible...; coupons; debt finance; exchangeable...; hybrid securities
banks
competitive bidding
credit ratings
offering techniques on primary markets
performance bonds
prospectuses
terms
bonus shares
Boo.com
book values
book-building
borrowings
bought deals
Bouygues
brands
breakeven points
budgeting
Buffett, Warren
bull markets
Burberry
business angels
business models
call options
Cameroon Airlines
CAPEX see capital expenditure
capital asset pricing model (CAPM)
see also beta coefficient; market portfolios
capital budgeting
capital decreases
capital employed
capital expenditure (CAPEX)
capital gains tax
capital increases and secondary offerings
capital market line
capital markets
capital structures
see also debt finance; equity finance
credit ratings
design issues
lifecycle stages of companies
managers
options
taxes
trade-off model
capitalization
Carrefour
CARs see cumulative abnormal returns
cascade structures
cash budgets
cash certificates
cash flow return on investment (CFROI)
cash flows
cash ratio
Castro, Fidel
CBs see convertible bonds
CDSs see credit default swaps
certificates of deposit
CFROI see cash flow return on investment
chief executive officers (CEOs)
China
Chrysler
climate risks
closed-ended funds
Coca Cola
COGS see cost of goods sold
Colombia
commercial risk
companies
compensation issues
competition
competitive takeover bids
conglomerate discounts
consolidated accounts
consolidation impacts
consolidation techniques
contingent claims
contingent convertible capital
contract guarantees
contractors
contracts
control premiums for synergies
conversion periods
conversion ratios
convertible bonds (CBs)
convertible preferred stocks
corporate finance
corporate governance
corporate valuation methodologies
correlations
cost of capital
cost of debt
cost of equity
cost of goods sold (COGS)
costs
counterparty risk
see also credit...
coupons
covariance
credit card receivables
credit default swaps (CDSs)
credit derivatives
credit insurance
credit lines
see also master credit agreements
credit ratings
credit risk
credit scoring
credit spreads
creditors
see also bankruptcies; debt finance; trade payables
cumulative abnormal returns (CARs)
currencies
currency options
currency risk
currency swaps
current liabilities
current ratio
Daimler
Danone
days of inventories outstanding (DIOs)
days of payables outstanding ratio (DPOs)
days of sales outstanding ratio (DSOs)
DCFs see discounted cash flows
DDM
debt beta
debt finance
debt policies
debt/equity ratios
debtors
default risk see credit risk
defeasance
deferred costs
deferred income
deferred tax
degree of operating leverage (DOL)
delistings
demergers
Deminor
depreciation
derivatives
Deutsche Bank
Deutsche Telekom
development capital funds
Diageo
dilution
DIOs see days of inventories outstanding
directors see boards of directors
disaster risks
disclosures
discontinued operations
discounted cash flows (DCFs)
discounting
discrete-time options pricing models
see also binomial models
diversification
divestments
dividend per share (DPS)
dividend yield
dividends
DOL see degree of operating leverage
Dow Jones Industrial Average
DPOs see days of payables outstanding ratio
DPS see dividend per share
DSOs see days of sales outstanding ratio
dual listed stocks
EADS
earnings
earnings per share (EPS)
EasyJet
EBIT multiples
EBIT (operating profit)
EBITDA
EBITDA multiples
economic profits
see also economic value added
economic risk
economic value added (EVA)
economies of scale
EDF
efficient markets
EGMs see extraordinary general meetings
Eiffage
Electrolux
Elis
emerging markets
employee stock ownership programs (ESOPs)
employee-shareholders
employees
Endesa
Enel distribution network
ENI
Enron
enterprise value (EV)
entrepreneurs
environmental risks
E.ON
EPS see earnings per share
equity finance
equity per share
equity risk premiums
Ericsson
ESOPs see employee stock ownership programs
EU
EURIBOR
European-style options
Eurostoxx
Eurotunnel
EV see enterprise value
EVA see economic value added
exceptional items
excess cash distributions
exchangeable bonds
execution phase of IPOs
expected returns
expenses
extraordinary general meetings (EGMs)
extraordinary items
Exxon Mobil
Fama, Eugene
family-owned companies
financial analyses of companies
financial assets
financial breakeven points
financial crisis from
financial distress costs
financial holding companies
financial institutions
financial leases
financial markets
financial risks
financial scandals
financial statements
see also balance sheets; cash flow...; income...
financing activities
finished goods inventories
fixed assets
fixed costs
see also costs
Ford
Fortis
forward currency transactions
forward rate agreements (FRAs)
forward-forward rates
forwards
France
France Telecom
FRAs see forward rate agreements
fraud risk
free cash flows
free float factor
Frére Group
G&A see general and administrative costs
Galbani
Gas Natural
general and administrative costs (G&A)
General Electric
General Motors
Germany
GIC
GlaxoSmithKline
golden parachutes
golden shares
Gordon terminal value formula
government bonds
government shareholders
Grameen Bank
grey markets
gross margin
Group Arnault
groups
Gulf States
Hamada formula
hedge funds
hedging
Hermès
Hertz
high-yield bonds
holding companies
holding company discounts
holding-period returns
hostile takeovers
human resources
hybrid securities
IASs
IFI
IFRSs
illiquidity discounts
income statements
income tax
see also taxes
Indesit
India
industrial risk
industrial/commercial/administrative synergies
inefficient markets
inflation
Infosys
ING
initial public offerings (IPOs)
insider trading
institutional investors
insurance
insurance companies
intangible fixed assets
Intel
interest payments
interest rate options
interest rate risk
interest rate swaps (IRSs)
see also forward rate agreements
interest rates
internal capital
internal rate of return (IRR)
Internet
inventories
inverted IRR rule
invested capital see capital invested
investing activities
investment cash flows
investment projects
investment-grade securities
investors
IPOs see initial public offerings
IRR see internal rate of return
Islamic finance
ISS
Italian S&P MIB index
Italy
Japan
Jensen, Michael
Keynes, John Maynard
KIA
Knight, Frank
Korea
Kuwait
Lafarge
Latin America
LBOs see leveraged buy outs
LBUs see leveraged buildups
leasing
Leeson, Nick
legal risk
letters of credit
letters of intent (LOI)
leverage effect
leveraged buildups (LBUs)
leveraged buy outs (LBOs)
liabilities
LIBOR
Lintner, John
liquidations
see also bankruptcies
liquidity
liquidity risk
listed companies
Lloyds
lock-up clauses
lockbox systems
London Stock Exchange
look back options
Lubrizol
Lufthansa
LVMH
management buy outs (MBOs)
management packages
managers
see also boards of directors; corporate governance
margin analyses
Mariani, Massimo
market capitalization
market growth
market indicators of value-creation
market makers
market multiples
market portfolios
market risk
market shares
market value added (MVA)
market values
marketing
markets
Markowitz, Harry
martingales
master credit agreements
mathematics
MBOs see management buy outs
Mediobanca
memorandum of understanding (MOU)
Merck
mergers and acquisitions (M&As)
see also industrial/ commercial/administrative synergies; takeovers
demergers
failures
post-merger value-creation assessments
prices
private companies
public companies
strategic value
success factors
Michelin
micro-finance
Microsoft
Miller, M.
see also Modigliani and Miller theorem
minority shareholders
Mittal
MKV firm
Modigliani and Miller theorem
money markets
Monte Carlo simulations
see also scenario analysis
Moody's
Morocco, tax rates
mortgage bonds
Moulinex
multiple IRRs
multiples
MVA see market value added
natural disaster risks
negative cash flows
negative covenants
negative NPV values
negative working capital
Nestlé
net asset values (NAVs)
net debt
net debt/EBITDA ratio
net financial expense
net income (net profit)
net present value (NPV)
see also discounting
net sales
Netherlands
Nobel Peace Prize
Nokia
non-executive directors see independent boards
non-voting shares
noncurrent assets
nonoperating working capital
nonrecurring items
NOPAT
normative analyses
Novartis
NPV see net present value
OBOs see owner buy outs
Office Depot
Olivetti
optimal debt ratio
options
over-the-counter (OTC) options
owner buy outs (OBOs)
Oyer, Paul
P/E see price/earnings ratio
P/E multiples
‘Pac-Man’ hostile takeover defenses
parents
Parmalat
pay-out ratio
payables
payback
PBR see price-to-book ratio
pecking order theory
pension funds
pension liabilities
Pepsi
perfect markets
Pernod Ricard
Peugeot group
Philipps
PIPEs
‘poison pills’ see shareholder rights plans
political risk
Porsche
portfolios
preference shares
premiums
prepayments
present values
price-to-book ratio (PBR)
price/earnings ratio (P/E)
see also earnings per share
prices
primary capital markets
private auctions for private companies
private equity funds
private investors
probability distributions
production/sales ratio
profits
project finance
provisions
proxy votes
public offers
purchases
‘pure play’ stocks
put options
quick ratio
R&D see research and development costs
rating agencies
raw materials
recapitalizations
receivables
regression analysis
regulatory risk
reinsurance markets
relative value ratios
remuneration committees
Rémy Cointreau
repos
research and development costs (R&D)
research in finance
reserved capital increases
return on capital employed (ROCE)
return on equity (ROE)
returns
revenues
rights issues
Rio Tinto
risk
risk analysis techniques
see also Monte Carlo simulations; scenario...; sensitivity...
risk management
risk–free rates
risk–return ratios
road shows
ROCE see return on capital employed
Roche
Rockefeller, John D.
ROE see return on equity
Roll, Richard
Ross, Stephen
Ryanair
S&M see selling and marketing costs
Sacyr
Saint-Gobain
sales
Samsung
Santander
SAP
savings
scenario analysis
see also Monte Carlo simulations; sensitivity...
scissors effects
SEB
secondary capital markets
secondary LBOs
securities
securities lending
securitization
security issues
security market line
self-hedging
selling and marketing costs (S&M), income statements
senior debt
sensitivity analysis
separation theorem
shadow rating
share analyses
share buybacks
share capital
share issues
share transactions
shareholder rights plans (‘poison pills’)
shareholders
shareholders’ equity
shares
see also convertible bonds; dividends; equity finance; hybrid securities
block trades
bonus shares
dilution
IPOs
lock-up clauses
non-voting shares
voting rights
Sharpe, William
Sherfin, Hersh
SIC-15
SIC-17 ‘Leases’
signalling theory
Singapore
Smoby
social security payables
Sodexo
solvency
Sony
SOTP see sum-of-the-parts method
sources of finance
sovereign wealth funds (SWF)
Spain
special purpose vehicles (SPVs)
see also securitization
spinoffs
split-offs
see also share buybacks
spreadsheets
stakeholders
corporate governance
information asymmetries
Standard & Poor's (S&P)
standard deviations
Stanford University MBA graduates
start-up companies
stock options
Stora Enso
strike prices
subordinated debt
subprime crisis from
subscription warrants
subsidiaries
see also groups
Suez
sum-of-the-parts method (SOTP)
suppliers
swap points
swaps
swaptions
Sweden
SWF see sovereign wealth funds
Switzerland
syndicated loans, banks
synergies see industrial/ commercial/administrative synergies
takeovers
see also industrial/ commercial/administrative synergies; mergers...
cash payments
cost of capital
failures
hostile takeovers
mandatory takeovers
minority shareholders
post-takeover value-creation assessments
private companies
public companies
regulations
share transactions
success factors
taxes
voluntary takeovers
tangible fixed assets
Tata
tax credits
taxes
TCI
technology risk
Telecom Italia
Telefonica
Temasek
Tesco
Thaler, Richard
time value of money
time value of options
TMT stocks
total shareholder returns (TSRs)
trade payables
trade receivables
trade-off model
transaction costs
transaction multiples
trend analyses
Treynor, Jack
trial-and-error IRR calculation methods
true or false tests
TSRs see total shareholder returns
Tunisia, tax rates
Turkey
Ubisoft
UK
Ukraine
underlying assets
Unibail-Rodamco
Unilever
Unistrat-Coface
unit trusts
unlisted companies
US
US GAAP
US-style options
Valeo
valuations
see also corporate valuation methodologies; prices; returns
arbitrage theory
binomial models
Black and Scholes option pricing model
convertible bonds
DCFs
EBIT multiples
EBITDA multiples
inventories
options
securities
value chains
value-creation
variable costs
variance
VAT
VDD see vendor due diligence
vendor due diligence (VDD)
venture capital
Vivendi Universal
Vodafone
volatilities
Volkswagen
voluntary takeovers
voting caps
voting rights
WACC see weighted average cost of capital
warrants
weighted average cost of capital (WACC)
Wendel
work in progress
working capital
working capital turnover ratio
World Bank
Worldcom
yield curves
yield to maturity see internal rate of return
Yunus, Muhammad
Z-scores
zero-coupon bonds