I- 4 Index
bre44380_idx_I1-I24 4 09/30/15 01:56 PM
privatizations, 851, 852
warrants bubble, 564
China Eastern Airlines, 77
CHIPS, 798
Chiquita Brands, 835
Choi, Bill, 428
Chooser (as-you-like-it) options, 566
Choudhry, M., 806
Chrysler, 471, 484, 638, 815, 817, 853, 858,
861, 862
Chui, M., 867n
Cingular Wireless, 848
Cisco, 761
Citibank, 388, 638
Citicorp, 848
Citigroup, 304, 371
Claessens, S., 877–878, 877n
Class A stocks, 878
Class B stocks, 878
Classified board defense, 834
Classified boards, 360
Clayton Act of 1914, 827
Clayton, J., 229n
Clear Channel Communications, 844
Clinton, K., 726
Closed-end funds, 78n, 369, 892
Closely-held corporations, 5–6, 847
Close-to-the-money projects, 119n
CME Group, 680n
Coca-Cola, 207, 311n, 339, 737, 738, 739
Cochrane, J. H., 212
Codetermination, in Germany, 875
Colak, G., 849n
Cole, R. H., 806
Collars, 620, 893
Collateral, 365
bank loan, 639
bond, 621
Collateralized debt obligations (CDOs),
623, 623n
Collateral trust bonds, 622
Collections, 795–796, 798–799
Collins, D., 752
Comcast, 827
COMEX (Commodity Exchange Division of
NYMEX), 680n, 681
Comment, R., 414–415, 415n
Commercial banks, 370–371
Commercial drafts, 791
Commercial paper (CP), 618, 640–641,
803, 804
Commerzbank, 819
Commit now option, 585
Commodity Exchange Division of NYMEX
(COMEX), 680n, 681
Commodity futures contracts, 684–686
Commodity price risk, hedging, 676
Common-size financial statements, 748–750
Common stock, 76–99. See also Equity
financing; Equity valuation; Portfolio risk;
Stock options; Stock repurchases
annual standard deviations and
variances, 172
classes of, 878
dividends. See Dividend(s)
equity financing, 358–363
initial public offerings (IPOs),
384 –394estimating, 135–137, 767–769
forecasting, 25–26, 107–108, 140–141, 500
in Monte Carlo simulation, 259–260, 261
in net present value analysis, 25–26,
108–109, 132–138
reinvesting, 4
surplus-funds mergers and, 817–818
tracing changes in cash, 762–766
Cash flow statement. See Statement of cash
flows
Cash in and run game, in financial distress, 474
Cash management, 796–799
in collections, 767–768, 798–799
in disbursement, 768–769, 796–798
international, 799
money-market investments in, 369,
800–805
Cash on delivery (COD), 791
Cash ratio, 748
Catastrophe bonds, 635, 677–678
Caterpillar, 174, 181, 196, 200, 200
Celanese, 80
Centerparcs, 855
CEOs. See Chief executive officers (CEOs)
Cerberus Capital Management, 815, 853, 853n,
854, 862
Certainty-equivalent cash flow, 236–237, 284
Certainty equivalents, 235–241, 284, 589
defined, 235
valuation by, 236–237, 551
Certificates of deposit (CDs), 803, 804
CFOs. See Chief financial officers (CFOs)
Chain letter game, 821
Chandler, A., 855n
Chapter 7 bankruptcy, 858–859
Chapter 11 bankruptcy, 858–863
Charles River Laboratories, 311
Charter Communications, 813
Chava, S., 627n
Chavez, Hugo, 852
Check Clearing for the 21st Century Act
(Check 21), 798
Check conversion, 798
Checks, 798–799
Chen, C. R., 844n, 846, 846n
Chen, H. C., 389, 389n
Chesapeake Energy, 80, 80, 849
Chevron Corp., 418, 856
Chicago Board of Trade (CBOT), 680–682,
680 n, 681, 682
Chicago Board Options Exchange (CBOE),
173 n, 526 n, 562–563, 565
Chicago Mercantile Exchange (CME),
680–682, 680n, 681, 682
Chief executive officers (CEOs)
board of directors and, 305–306, 308
compensation of, 302–311, 373
earnings and earnings targets, 319–320
stock options. See Stock options
Chief financial officers (CFOs)
earnings and earnings targets, 319–320
market reaction to stock issues, 396–398
stock options. See Stock options
Childs, P. D., 579n, 580n
Chile, short-term capital inflows, 511
China
initial public offerings (IPOs) in, 384, 390,
395, 396, 396forecasting economic rents, 284–287
forecasting market values, 279–282
incentives, 304–305, 422
market values in assessing, 279–282
Monte Carlo simulation, 259–262
performance measurement, 311–320
real options, 262–266, 573–592
sensitivity analysis, 252–258
Capital constraints, in capital budgeting,
119 –12 4
Capital, defined, 4
Capital expenditures. See also Capital
investments; Investment decisions
in applying net present value rule, 133–134
capital budgeting decisions, 2–4
leasing and, 656
Capital gains taxes, 422–426
Capitalia, 819
Capital investments, 108–109, 250–252. See
also Capital budgeting
Capitalization, market, 737
Capital leases, 656
Capital markets. See also Financial markets
historic performance of, 162–169
Capital rationing, 119–124
def i ne d, 119
example, 121–123
hard, 123
linear programming in, 121–123, 197
profitability index in, 107, 120–121
quadratic programming in, 197
soft, 122–123
Capital structure, 889. See also Debt
financing; Debt policy; Equity financing;
Restructuring
changes in, 445–446
defined, 4
Modigliani-Miller approach to, 416,
438–454, 889
theory of optimal, 483–484
trade-off theory of capital structure, 467,
477– 479
CAPM. See Capital asset pricing model
(CAPM)
Caps, 620, 893
Caput options, 566
Cargill, 385
Carhart, Mark M., 335n
Carletti, E., 377, 896n
Carried interest, 382–383, 854
Carrow, K. A., 634n
Carry trades, 717
Carter, D. A., 680, 680n
Carve-outs, 850–851
Cash budgeting, 767–769
inf low, 767–768
outf low, 768–769
Cash coverage ratio, 746
Cash cycle, 765–766
Cash discounts, 791
Cash-flow beta, 230
Cash-flow rights, 359, 361, 381
Cash flows. See also Discounted cash flow
(DCF)
in applying net present value rule, 133–135
discounting, 38–39
equivalent annual, 148–150
Capital budgeting decisions—Cont.