I-8
IndexI-8
dividend payments 534, 572, 587
under deeds 770–1
fundamentals 536–41
‘life-cycle’ pattern 553
payment patterns and measures
536–7, 553
relevant dates 537–8
dividend payout ratio 537
dividend per share (DPS) 34
dividend policy 563
‘sticky’ 488
dividend yield 192, 537
dividends 159, 192, 320, 359–60
annual 92–3, 160–1
CFO views 542
effects 543–4
fixed-dollar dividends 539
lack of 168–9
lost 93
payment to convey information 553
in perfect/imperfect worlds 545–50
practices 542–4
repurchases 536, 542–4
dollar returns 193–4
dollar-days 666
domestic markets 447
dual-class recapitalisation 743
due diligence 180, 437, 443, 453
DuPont system 49–51, 576, 636
Dutch auction repurchase 541E
earnings 33, 52, 316–17, 322, 470, 536
earnings available for ordinary
shareholders 34
earnings before interest 359
earnings before interest and taxes
(EBIT) 33–4, 402–4, 469–70,
473–4, 478
earnings before interest, taxes and
depreciation and amortisation
(EBITDA) 175, 177, 736 – 7 , 743
earnings per share (EPS) 34, 382–3,
469–70, 541, 543
backward-looking figures 21
effect of a merger on 733 – 4
EPS accretion 733
economic development 698
economic exposure 789
economic growth 355
economic order quantity (EOQ) model,
basic 637
economic profit 323, 420economic value added (EVA) 318,
323–4, 573
technique 174
economies of scale 503–4, 727 – 8 , 731
economies of scope 728
effective annual rate (EAR) 98–9
effective borrowing rate (EBR) 679
efficient frontier 210
efficient markets hypothesis (EMH)
250
EFTPOS 590
elastic demand 232
electronic bill presentment and payment
(EBPP) 667
electronic collection systems 667–8
electronic depository transfer (EDT) 669
electronic funds transfer at point of sale
(EFTPOS) 667
electronic invoice presentment and
payment (EIPP) 667–8
emerging markets 241–2
employee share option grants (ESOs)
292, 452, 689
employee stock ownership plan (ESOP)
743
employees, entitlements under voluntary
administration 768 , 772–3
employment contracts 773
end of month (EOM) 673
ending cash 588–90
endowment funds 695 , 696
Enron collapse 25
enterprise value 735
versus equity value 736
entrepreneurial finance 688–711
entrepreneurial growth companies
(EGCs) 688–90
entrepreneurship 452–3
equilibrium 149
equipment replacement 378–80
equipment trust certificates 140
equity 11, 46, 92–3, 174, 201, 210, 359–
60, 400–5, 404, 408, 574–6, 708 – 11
average returns and standard
deviation 205
real returns 213–14
‘sweat’ equity 693
equity beta 401, 404
equity capital 14, 452
equity capital market (ECM) 434
activity 438, 439
equity carve-out (ECO) 455
equity claimants 19equity kickers 293
equity multiplier 47, 50
equity returns, variability 203–6
equity securities 158, 178–82
debt securities, distinction 159
secondary markets for 181–2
equity value, versus enterprise value 736
equity–debt choice 465
equivalent annual cost (EAC) 378–80
ethics 24–5, 25, 663
euro 617–19
Eurobonds 438–9, 514
Eurocurrency loan market 506–7
European call option 265
European Commission (EC) 750 – 1
European Union (EU) 548–9
European venture capital 708 – 9
Excel spreadsheet program 70–1, 74–8,
82–5, 87–90, 100, 102, 126–9, 321, 328
no real solution 332–3
excess capacity 380
excess cash 588–90
exchange rates 603–17, 789
current see spot exchange rate
RBA quotes 606–12
exchangeable bonds 141–2
exchange-traded Treasury Bonds (TBs)
136
ex-dividend date 537–8
executive compensation plans 24
exercise price 263
exercise the option 265
exit strategies 706 – 7
expansion financing 696
expansion options 417
expectations theory (expectations
hypothesis) 149
expected inflation 134–5
expected returns 226–36
see also systematic risk
expiration date 265
exports and imports 612
external administration 762 , 771–2
external equity financing 689
external financing 11, 433
external financing requirement 434–5
external funds required (EFR) 542,
581–2
extra dividend, or special dividend 539F
face value 124, 131, 508, 516
factoring 641