I-12
IndexI-12
emerging 241–2
foreign exchange 612–14
global betas 241–2
international 708 – 11
for IPOs 445–56
opportunities 571
participants 612–13
perfectly competitive 420
proxy 230–1
systematic risk, payments to investors
230
marking-to-market 802 – 3
matching strategy 584–5
material requirements planning (MRP);
MRPII 639
maturities 504
maturity date 14, 124, 128, 131–2, 141
a ‘paper loss’ 135–6
merchant banks 436
merger waves 719–25
mergers 760
accounting treatment 746 – 8
acquisition necessary for? 726
antitrust considerations 750
payment method 738–9
regulation 748 – 51
shareholder gains/losses 737–8
transaction details 741 – 5
types 741 – 2
valuation methods 735–7
value creating? 734 – 40
viability limitations 729
Where Mergers Go Wrong 727
mergers and acquisitions (M&A) 718
activity trends 719 – 21
board’s duties in M&A context 752 – 3
global activity 721 – 3
outcomes 725 – 6
mergers of equals 741 – 2
mezzanine debt 436
middle-of-the-road approach 585
minority interest 748
mixed (cash flow) streams
future value 79–81
present value 86–8
mixed offering 445
mixed offerings 739
money
cost of 504
time value of see time value of money
money management 9
money market mutual funds 677
mortgage bonds 140mortgages 129–30
MSCI World Index 231
multinational corporations (MNCs) 602
multiple discriminant analysis 777
multiples 736
multi-tiered ZBAs 674
mutual funds 251
mutually exclusive projects 329
IRR, NPV and 333–6N
naked option position 272
National Credit Code 99
natural hedging 614–16
negative covenants 142, 502–3, 525, 702
negotiated offer 179
negotiation 437, 503, 703 , 718 , 790 ,
794
versus insolvency 765
net asset value (NAV) 677
net cash flow 588–90
net income 34, 315, 317
net income before interest and after
taxes 360
net operating profits after taxes
(NOPAT) 38, 40, 573
net payoff 270
net present value (NPV) 308, 310,
318–24, 331–2, 355–7, 370–1,
400–1, 410–14, 419, 515, 522–3,
554, 727 , 794 – 5
calculations 318–22
competition and 420–1
good investment decisions 318–19
IRR and mutually exclusive problems
333–6
non-perfectly competitive markets
and 420
pros and cons 322–3
Protect It Ltd study 375
revising rule 617–19
share prices and 319–22
value overstating/understating 416–17
variant see economic value added
WACC use in 408
net present value (NPV) profile 326
net price 179
net profit margin 48
net profits after taxes 34
net working capital 43, 364–5
New Zealand
key regulators 445
markets 181New Zealand Stock Market (NZSX
Market) 181
nominal returns 132, 195–7, 196, 198,
199, 200, 205, 206
non-cancellable lease 520
non-cash charges 38
non-cash expenses, adjusting for 360–1
non-recourse loans 507–8
non-resident companies 53–4
normal distribution 202–3
notes 143, 508
notes payable 32
notes to financial statements 36
NZ Alternative Market (NZAX Market)
181O
offer price 179
open interest 801
open item 651
opening futures price 800
openmarket share repurchase 541
operating assets 628
operating cash flow (OCF) 38
operating cycle (OC) 628–9, 630 – 2
operating flows 37
operating leases 520, 525
operating leverage 402–3, 504, 577
operating profit 33
operating profit margin 48
opportunity costs 122, 369–70
option payoff diagrams 269–79
option premium 265
option prices 266–8
determining 285–8
pricing models 282–91
qualitative analysis of 279–82
option trading 265–6
options 302, 806 – 7
in corporate finance 292–7
keeping open 262
option values, influencing factors
279–82
types 296–7
vocabulary 263–8
order cost 637
ordinary annuities 81–4, 89–91
ordinary corporate income 53–4
ordinary equity 451–2
ordinary shares 14, 33, 122, 138,
158–60, 192, 574
valuing 162–3, 170–8
out of the money 267