I-14
IndexI-14
prospectus 180, 440, 454
protective covenants 142
protective put 275
proxy fight 159
proxy statements 159
public companies 18
public comparables 735
public debt, public–private choice 501
public security sales 440–5
publicly traded companies 445
public-private partnerships (PPPs) 507
public-to-private transactions 742 – 3
purchase options 521
purchasing (procurement) card
programs 675
pure discount bonds 140
pure share exchange merger 738
put option payoffs 271–2
put options 265, 419, 806
putable bonds 142
put–call parity 275–9, 282Q
Qantas case study 625–6
quadratic equations 329–30
qualitative analysis 279–82
quarterly compounding 96–7
quarterly dividends 161
quick (acid-test) ratio 43–4R
R&D expenditures 709 – 10
random walk 416
ratchet provisions 702
rate of return 77, 91, 93–4, 329, 333–4
ratio analysis 42–52
ratio of company value (Vcompany) 175
real interest rates 134–5
real options 416–19
strategic thinking and 421
types 417–19
real returns 132, 195–7, 196–8, 213
recapitalisation 467–71, 475, 479, 742 – 3
receivership 773–4
recession 5, 135, 148, 469, 570–1
reconciled cash balance 29
record date 537
redemption option 706
refund (refinance) 515, 516–19
relative valuation 729 – 30
renewal options 521
reorder points 637 – 8
repurchase rights 702repurchases 541–4, 548, 555
CFO views 542
effects 543
methods 541
practices 542–4
required rate of return 122, 131–2
Reserve Bank of Australia (RBA)
606–12
resident companies 53–4
residual claimants 22, 159
see also shareholders
residual income measure (RIM) 174
residual theory of dividends 553
resource complementarities 728
retail lockboxes 669
retained earnings 33, 490, 575
retention rate (rr) 168
retirement pensions 9
return on investment (ROI) 48, 315–16,
474, 573
return on ordinary equity (ROE) 48, 168
return on total assets (ROA) 48, 50,
315–16, 474
returns 192–4, 206, 233–4
to bidder and target (mergers)
737–8
history 195–202
shares higher than bonds 227, 230
revenue 33, 137
maximisation 443
synergies 727 – 8
revenue neutral 633
reverse LBO (or second IPO) 455, 743
reverse share splits 540
reverse triangle merger 741
Revlon duties 753
rights, intellectual property 689
rights offerings 458
risk 131, 135, 239–42, 313, 317, 335,
453, 503, 788–9
borrower risk 504
capital budgeting and 400–21
expected returns and 234–6
managing see financial risk management
risk–real option values link 419
of single asset 230–4
volatility and 202–6
see also default risk
risk - discount rate reflects project risk
619–20
risk dimension 197–201
risk factors 788–90
risk hedging 614–16risk management 11–12, 572, 817
risk premium 200, 214
risk shifting 11–12
risk spreading 11–12
risk-adjusted discount rate (RADR) 410
case study 429
risk-based approach (returns) 229–36
risk-free portfolios 283–5
risk-free rate 234–5, 244, 401, 620, 796
road show 180
royalties 695
Rule 144A offering 448S
S&P/ASX 200 Index 225, 230, 233–4
safety motive 677
safety stock 637 – 8
salary payments 503
sale-leaseback arrangement 521
sales forecast 578
sales growth 574
sales revenue 33
scale problem (IRR) 333–4, 337
scatter plots 232–3
scenario analysis 413–14
scrip bids 738 – 9
seasoned equity offerings (SEOs) 179,
438, 456–9
share price reactions to 457–8
secondary investment 706
secondary markets 137, 178–82
secondary offerings 438, 445
secondary-market transactions 15
secured bonds 508
secured creditors 775
secured debt 139–40
secured loans 505
securities 31, 41, 178–82, 230, 442,
633 , 703 – 4
payoffs for securities portfolios 272–5
public sale of 440–5
securities markets 438–9
securitisation 438
security interest 511
security market line 245
self-tender 541
selling short see short selling
semiannual compounding 96, 129–30
semi-government bonds 136
seniority 703
seniority rankings 139, 433–4
sensitivity (of assets) 805
sensitivity analysis 412–13