I-14 Index
bre44380_idx_I1-I24 14 09/30/15 01:56 PM
Nenova, Tatiana, 361, 361n, 878, 879n
Nestlé, 174, 182, 719, 719
Net convenience yield, 684–685
Net leases, 653
Net operating profit after tax (NOPAT), 740n
Net present value (NPV), 105–109, 328–329,- See also Net present value rule;
Present value (PV)
calculating, 105–106
capital budgeting decisions and, 249–271
capital budget, defined, 250
capital investment process, 250–252
decision trees, 263, 265, 266
economic rents. See Economic rents
forecasting market values, 279–282
incentives, 304–305
Monte Carlo simulation, 259–262
performance measurement, 311–320
process for, 250–252
real options, 262–266, 573–592
sensitivity analysis, 252–258
defined, 23, 105
in evaluating expansion option, 288–294
financing decisions and, 5, 138, 141, 319
investment decisions and, 105–109,
132 –151
alternatives to, 107
book rate of return versus, 108–109
cash flow in, 132–138
cost of excess capacity, 146, 150–151
depreciation and, 137, 139–140,
142 –14 4
example, 139–146
forecasting economic rents, 284–287
incentives, 302–311
inf lation and, 137–138
investment versus financing decisions,
138, 141, 329
key points concerning, 107–108
long- versus short-lived projects, 146,
147–150
market values in, 279–282
multiple cash flows, 25–26
payback analysis versus, 10 9 –111
replacement problem, 146, 150
review of basics, 105–109
t a xes a nd, 142 –14 4
tim ing, 146 –147
key features, 107–108
leasing and, 664, 666n
for other countries/currencies, 145–146
present value versus, 23, 23n
production option and, 583–587
project analysis, 144–145
project risk and, 890
review, 105–109
sensitivity analysis and, 253–254
Net present value rule, 132–151
applying, 132–138
to choose among projects, 146–151
statement of, 25
Net return on investment, 312
Netter, J. M., 852n
Net working capital. See Working capital
Net-working-capital-to-total-assets, 747
Neuberger, Anthony J., 284n, 300 n
Neuer Markt, 383, 892
Nevitt, P. K., 668
example, 259–262
Montgomery, C., 857, 857n
Moody’s credit ratings, 66, 608, 612–613, 636,
640 n, 792
Mooradian, R. M., 864
Moore, J., 862n
Moral hazard risk, 677
Morck, R., 885
Moretti, E., 835n
Morgan Stanley, 6, 371, 371n, 387–388, 388,
394–395, 638
Morningstar Credit Ratings, 608n
Morris, J. R., 779
Mortality bonds, 635
Mortgage-backed securities (MBSs), 304
short sales of, 11
subprime crisis of 2007–2009, 11,
304–305, 308, 343–344, 374–375,
600–602, 623, 895, 896
Mortgage bonds, 621–622
Mortgage pass-through certificates, 623n
Mortgages
calculating payments, 32
subprime crisis of 2007-2009, 304–305,
308, 343–344, 374–375, 600–602,
623, 895, 896
Motorola, 831, 849
Motorola Mobil it y, 814
Mulally, Alan, 484
Mulherin, J. H., 838
Mullainathan, S., 304n, 879–880, 880n
Mullins, David W., Jr., 344n, 348, 348n
Multi Commodity Exchange (India), 681
Müntegering, Franz, 845n
Murphy, K. J., 321
Murphy, T., 790n
Mutual funds, 368–369
closed-end, 78n, 369, 892
open-end, 78n, 369
Mutually exclusive projects
internal rate of return and, 115–118
net present value rule for, 146–151
Myers, Stewart C., 169, 234, 251, 295, 397n,
482 n, 486, 507n, 508 n, 581 n, 590 n, 664 n,
683 n, 777, 821n, 822 n, 883 n, 890N
Nagel, S., 421n
“Naked” call options, 223n
Nanda, V., 392n, 849 n
Nanjing Cenbest, 835
Narayanan, P., 615
Nardelli, Robert, 308
Nasdaq (National Association of Securities
Dealers Automated Quotations System),
77, 563
Nasdaq Composite Index, 339, 892
Nationalization, 851–852
Nationally recognized statistical rating
organizations (NRSOs), 608n
Naveen, L., 311n
Navistar, 306
NCR, 848, 849
Negative pledge clause, 621n, 626
Negotiable certificates of deposit (CDs),
803, 804sensible motives for, 814–819
synergies in, 815 –819
takeover battles and tactics, 830–835, 832
types, 814 –815
waves of, 813, 836, 895–896
Merlin Entertainment, 855
Merrill Lynch, 304, 308, 371n, 374
Merton, Robert C., 366n, 376, 558n, 592,
604 n, 891, 891n
Metrick, A., 400, 833n, 854 n
Mexico, put options on oil, 678
Mezzanine financing, 381, 381n
Mian, S. L., 806
Michaels Stores, 855
Michaely, R., 385n, 413 n, 414 n, 423 n, 430
Microsoft, 4–5, 174, 181, 196, 200, 225–227,
226, 330 –331, 331, 477, 738, 739, 740
Mihov, V. T., 627n, 628 n, 636 n
Mikkelson, W. H., 415n
Miles, J. A., 506n, 515, 849n
Milgrom, P., 401
Miller, Merton H., 416–417, 416n, 424,
424 n, 438 n, 454, 463n, 465, 465n, 507 n,
635–636, 674
Miller, N. G., 229n
Miller, S. C., 638n
Mill, John Stuart, 890
Miranda, J., 846n
Miranti, P. J., Jr., 855n
Mishler, L., 806
Mishra, D. R., 723n
Mitchell, M., 827, 827n, 835, 835n, 836, 838
Mitsubishi Estate Company, 476n
Mitsui & Co., 649
Mittal Steel, 834–835
Mittelstaedt, F., 752
Miyajima, H., 873n, 884
Mizuho Bank, 816, 816n
Modified accelerated cost recovery system
( M ACRS), 142 –14 4, 146n
Modified duration, 54
Modified internal rate of return, 115n
Mod igl ia n i, F., 416 – 417, 416n, 438 n, 463 n,
507 n, 674
Modigliani-Miller (MM) approach
to capital structure, 438–454, 889
law of conservation of value, 439–440,
888–889
Proposition 1, 439–443, 444, 446, 449,
451, 462, 463–464, 504
Proposition 2, 443–445, 448, 449, 452,
504, 505
rebalancing and, 506n, 507
taxes in, 462, 463–464
violations of, 451
to payout policy, 416–421, 426
Moffett M. H., 726
Mohan, N., 844n, 846, 846n
Mola, S., 399n
Money machines, 58, 711
Money market, 800
Money-market investments, 369, 800–805
calculating yield on, 800–801
types, 802–805
yields on, 800–801
Monte Carlo simulation, 259–262
defined, 259
Mergers—Cont.