I-10
IndexI-10
shareholders’ expectation of 793
strategies 793–4
tax incentives to 791 – 2
hedging decision 790–4
Herfindahl Index (HI) 748 – 50
hidden action problem 472
‘high-beta rally’ 225
high-tech companies 700
high-yield bonds 513–14
histograms 202–3
historical approach (returns) 227–8
historical cost 46
historical data 168, 227, 251, 805
historical share returns, distribution
202–3
horizontal mergers 718
hostile takeover 24, 742
hubris hypothesis of corporate takeovers
732
hurdle rate 315–16, 325–6, 329, 331,
573I
if... then statements 414, 421
imports and exports 612
imputation tax system 359–60
in the money 267–8
income 53–4, 141
= revenue – expenses 33
income tax 551
‘other income’ 33–4
income bonds 509
income statements 33–4
incremental cash flows 357, 368–70
indenture 124, 510
index funds 251
indirect insolvency costs 482
indirect quote 608
inelastic demand 232
inflation 94, 196, 503
Australian inflation rate 134
interest rates and 133–4
risk adjustments for 401
inflation linked bonds 139
information gathering 666
information management 664 , 666
informational asymmetries 488
initial margin 803
initial public offerings (IPOs) 11, 77,
179–80, 438, 441, 687 , 689 , 693 ,
699 , 704 , 705
advantages and disadvantages 452–4
financial and managerial costs 453–4investment performance (US) 448–9
market for 445–56
market patterns (US) 447–8
negative long-term IPO returns
448–9
non-US 442, 450
specialised 455
underpricing and initial return 448,
450
venture-backed 698
innovation 698
insider-trading scandals 751
insolvency 14, 482, 525, 763 , 763–78,
784
business failure and 763–5
claims priority 775–7
costs of 482–4
insolvent 482
potential insolvency as bargaining
tool 765
predicting 777–8
processes 765–74
insolvency costs 482, 487
asset characteristics and 483
institutional investors 447, 453
institutional venture capital funds 692
insurance 790
intangible assets 31–2
integrated accounts payable 675
intellectual property 173, 689
interest 14
interest differential 808
interest expense 34
interest rate caps, collars, floors 807
interest rate forward contracts 799 – 800
hedging with 799 – 800
interest rate futures, hedging with 804
interest rate options, hedging with 807
interest rate parity 618
interest rate risk 131, 335, 788 – 9
driving forces 131–2
interest rate swaps 808 – 10
interest rates 72, 98–9, 503, 673
bond prices and 124–36
forecasting using yield curves 148–50
inflation and 133–4
interest on interest see semiannual
compounding
interest rate–inflation rate connection
134
risk adjustments for 401
term structure of 147–51
interest tax shields 479–80interim dividend 536
internal financing 433
internal rate of return (IRR) 308, 310,
323, 325–36, 340
advantages and disadvantages
329–33
mathematical problems 329–30
multiple IRRs 330–2
no real solution 332–3
NPV and mutually exclusive problems
333–6
scale problem 333–4, 337
timing problem 334–6
internally generated funding 434–5
international activity 721 – 5
international corporate bond financing
514
International Financial Reporting
Standard IFRS-3 746
International Financial Reporting
Standards (IFRS) 31
international investment 603–20
international markets 708 – 11
International Monetary Fund 603–4
international ordinary equity 439
international regulatory authorities
750 – 1
international share issues 451
Internet banking 7–8
Internet commerce 720
intrinsic value 267
inventory management 574, 635 – 9
controlling techniques 636 – 9
cost-segregated see ABC inventory
control system
optimal inventory levels 635
inventory turnover 44
invested capital requirements 315–16
investee companies 700
investment 664
early- and later-stage 696 – 7
embedded options – fair valuation
416–17
equally risky 400
evaluating 310–11
increasing options 261–2
institutionalisation of 9
international 603–20
in inventory 636
life span 365
long-term 617–20
minimising 635
patterns of companies 693 – 4 , 708