Index I-13
bre44380_idx_I1-I24 13 09/30/15 01:56 PM
expected, 162 –16 4
h istor ic, 162 –16 4
in three-factor model, 209
Market timing, 482
Market-to-book ratio, 737, 737, 737 n
Market value, 279–282
Cadillac/movie star parable, 280
in capital budgeting decisions, 279–282
in investment decisions, 279–282
Market value added, 737, 738
Market Volatility Index (VIX), 173n,
562–563, 564
Markowitz, Harry M., 192, 192n, 197
Mark to market, futures contract, 682
Marriott Corporation, 627, 641
Marsh, P. R., 61n, 65n, 162 –16 4, 162n, 163n,
164n, 166 –167, 167n, 168 n, 170 n , 173n ,
186, 295, 344n, 716n
Marston, F. C., 723n
Martin, K. J., 818, 818n
Marvin Enterprises case, 288–294, 379–381,
385–389, 406–409
Marx, Karl, 294
Mason, S. P., 592
Master limited partnerships, 362
Masulis, R. W., 400, 489n, 822 n
Matching duration, 692–693
Matching maturities, 760
Mattel, 305
Matthews, J., 623n
Mauer, D. C., 760n
Maug, E., 875, 875n
Mayer, C., 874in
Mayers, D., 891n
Mazda, 881
McCardle, K. F., 835, 835n
McConnell, J. J., 634n, 659 n, 668, 818, 818n
McDonald, R. L., 567, 592
McDonald’s, 305
McGuire, William, 563
MCI, 882
McKinnell, Henry, 308
McKinsey & Company, 313
McNichols, Maureen F., 610, 610n, 611n
Medium-term notes (MTNs), 618, 641,
803, 804
Medtronic, 813
Megginson, W., 395n, 400, 852n, 864, 865
Mehra, R., 166n, 186
Mehrotra, V., 849n
Mehta, P., 879–880, 880n
Mei, J., 232n
Mercedes Automobil Holding, 873
Mercedes-Benz, 853
Merck, 80, 813
Mergers, 813–838
antitrust law and, 827–828
Bank of America, 819
conglomerate mergers and value
additivity, 841–842
dubious motives for, 819–822
economy and, 836–837
estimating gains and costs of, 822–827,
835–836
form of acquisition, 828
junk bonds and, 845, 846
mechanics, 827–830
merger accounting, 828–829Lorillard, 813
Lottery winnings, 30
Loughran, R., 337n
Loughran, T., 391n, 392 n, 398 n, 399 n
Lowe’s Companies, 751
LT V, 855
Lucas, Deborah, 607
Lucent Technologies, 848, 849
Luehrman, T. A., 515
Lufthansa, 366, 680
Lu, Qi, 349n
Luxottica Group SpA, 628
LV M H , 3, 3 n, 174, 182
Lyondell Chemical Company, 858M
Macaulay duration, 52–53, 54n
Mackie-Mason, J., 478n
MacKinlay, A. C., 333n
Macquarie Bank, 371
Maddaloni, A., 867n
Madoff, Bernard, 11–12, 12n
Majd, S., 581n
Majluf, N. S., 397n
Majority voting, 360–361
Maksimovic, V., 481n, 851, 851n
Malkiel, B. G., 350
Malmendier, U., 835n
Management buyouts (MBOs), 843–847
Management compensation, 307–309. See also
Incentives; Stock options
Mandelker, G. N., 231n
Maness, T., 806
Mann, C., 606n, 607 n
Mannesmann, 308
Mann, S. V., 71, 806
Marcus, A. J., 165n
Maremont, Mark, 815n
Margin, in futures trading, 681–683
Margrabe, W., 576n
Marketable securities. See also specific types
as financial assets, 2–3
management of, 800–805
Market-based risk models, 610–613
Market-book ratio, 95–96
Market capitalization, 4–5, 722, 737
Market capitalization rate, 82, 87. See also
Cost of equity capital
Market efficiency. See Efficient-market
hypothesis
Market factor, in three-factor model, 208–210
Market for corporate control, 831
Market model, 333
Market orders, 77
Market portfolio
risk of, 165
stocks in, 204n
Market risk, 888
beta in measuring, 181–184
defined, 176, 192
estimating, 240–241
portfolio diversification and, 173–176
spreadsheet functions in estimating,
240–241
Market risk premium
defined, 199Lewis, M., 337n
Liabilities, current, 502
Liability restructuring, 834
Liberty Media, 849
LIBOR (London Interbank Offered Rate), 364,
620, 637, 638, 686n, 687–688, 801
Lichtenberg, F., 837n
Lie, E., 563n
Li, F., 592
Life cycle of firm, payout policy and, 426–429
Life Technologies, 813
LIFFE, 680n, 681, 682
Limited liability, 5, 468, 603–604
Limited liability companies (LLCs), 6
Limited liability partnerships (LLPs), 6
Limited partnerships, 6, 362, 382–383,
853–854
Limit orders, 77
Linares, P., 166n, 186
Lindt & Sprüngli, 719
Linear programming (LP), 121–123, 197
LinkedIn, 878
Lintner, John, 200, 200n, 416 n
Liquidation value, 79, 500
Liquidity
of current assets, 760–761
defined, 746 –747
value of, 894–895
Liquidity ratios, 746 –748
Liquid yield option notes (LYONs), 635
Litton Industries, 855
Litzenberger, R. H., 424, 424n
Lizzeri, Alessandro, 654n
Ljungqvist, A., 392n, 400, 401
Lockbox systems, 799
Lognormal distributions, 193n
London Interbank Offered Rate (LIBOR), 364,
620, 637, 638, 686n, 687–688, 801
London Metal Exchange (LME), 681
London Stock Exchange, 77, 881
Longevity bonds, 635
Long-lived assets
choice between short-lived assets and, 146,
147–150
investing in, 355–356
multiple risk-adjusted discount rates for,
238–239
single risk-adjusted discount rate for,
237–239
Long Term Capital Management (LTCM), 343
Long-term financial planning, 772–777
contingency planning, 773
example, 774–776
pitfalls in model design, 776
short-term financial planning versus,
759–762
Long-term financing decisions, 619–629. See
also Corporate financing
choosing a plan, 776–777
contingency planning, 773
example, 774–776
pitfalls in model design, 776
Lookback options, 566
Loomis, C., 294n
Lopez-de-Silanes, F., 359n, 429 n, 871, 871n,
877, 877n, 884, 885
LoPucki, Lynn, 861n
L’Oreal, 6