Index I-19
bre44380_idx_I1-I24 19 09/30/15 01:56 PM
Stein, Jeremy C., 348n, 632 n, 698, 864
Step-up bonds, 635
Stern, J. M., 322
Stern Stewart, 313, 313n
Stertz, Bradley A., 815n
Stigler, George, 479
Stiglin, L., 846n
Stiglitz, J. E., 336n
Stillwell Financial, 503
Stock dividends, 412, 412n
Stockholders. See Shareholders
Stockholders’ equity, interest tax shields and
value of, 462
Stock options, 525–541. See also Option
pricing models
Black-Scholes model for valuing, 547,
557–564, 587–588, 589, 889
call options. See Call options
financial alchemy with, 530–535
incentives created by, 309–310
payout policy and, 422
position diagrams, 527–530
profit diagrams, 529–530, 530n
put options. See Put options
selling/writing, 528–529, 531
stock value and, 536–541
strategies for using, 530–535
types, 564–566
Stock price
anticipation of merger, 824–826
dividends and, 81–85
in equity valuation, 76–78
future, 82–85
link between earnings per share and, 78,
79, 90 –93
market reaction to stock issues, 396–398
option values and, 536–541
Stock repurchases, 410, 418–421
free cash flow and, 97–98
growth in use, 356, 356
information content of, 414–415
i r releva nce, 418 – 419
method of using, 413
Stock splits, 412n
reverse, 362, 362n
Stohs, M. H., 760n
Stonehill, A. I., 726
Stonier, J. E., 585n, 585n, 586n
Stored-value cards, 797
Straight-line depreciation, 139–140, 144, 655
Stretching payables, 768
Stripped bonds (strips), 56–57, 62
Stromberg, P., 383n, 863 n, 864
Strong form of market efficiency, 332,
334–335, 888
Structured investment vehicles (SIVs), 641, 747
Stulz, R. M., 396n, 698, 723n, 761 n
Subordinated debt, 365
Subprime mortgage crisis, 304–305, 308,
343–344, 374–375, 600–602, 623, 895, 896
Sufi, A., 637n, 639 n
Sumitomo Bank, 881
Summers, L. H., 333n
Sundaresan, S., 71
Sundgren, S., 863n
Sunk-cost fallacy, 137
Suntory, 813
Supermajority, 361, 833, 834SPDRs (Standard & Poor’s Depository
Receipts), 369
Special dividends, 412
Special-purpose entities (SPEs), 366, 477, 619,
666–667, 882
Specific (diversifiable) risk, 176, 176n,
181–182, 192, 230, 232–234
Speculation, 695–696
Spindt, P. A., 393n
Spinning, 388, 389
Spin-offs, 849, 850
Spitzer, Eliot, 389
Split-ups, 849
Spot prices, 679, 684–686
Spot rate
defined, 55
of exchange, 708, 708, 710 –711
forward premium and, 710–711
law of one price and, 55–56, 600, 712n
Spread
spark, 583
underwriting, 388–389, 395–396, 396
yield, 66–67, 599–602
Spreadsheet functions
bond valuation, 69
discounting cash flows, 38–39
estimating market risk, 240–241
estimating stock risk, 240–241
internal rate of return, 122
Sprint, 739
Stafford, E., 623n, 827, 827n, 835, 835n, 836,
838
Staggered board defense, 834
Stakeholders
in leveraged buyouts, 844–846
shareholders versus, 875–876
value maximization, 7–13
Standard deviation
def i ne d, 169 –170
of foreign stocks, 173, 173
in measuring portfolio risk, 169–173,
182 –183
portfolio, 169–172
in portfolio theory, 192–193, 198n
in Sharpe ratio, 198–199, 198n
Standard error, 164n
of estimated beta, 227
Standard of profitability, 113
Standard & Poor’s 500 Index, 78, 335,
562–563, 565
Standard & Poor’s Composite Index, 165, 180,
338, 369, 563
Standard & Poor’s credit ratings, 66, 68, 608,
636, 640n, 792
Standard & Poor’s Depository Receipts
(SPDRs), 369
Standards, accounting, 733–734
St a rbuck s, 11–12
State Bank of Pakistan, 649
Statement of cash flows, 762–766
example, 763
financing activity, 763, 764
investing activity, 763, 764
operating activity, 763
Statman, M., 422n
Staunton, M., 61n, 65n, 162 –16 4, 162n, 163n,
164n, 166 –167, 167n, 168 n, 170 n , 173n ,
186, 716nevaluating plan, 771–772
example, 770–772
leases in, 653
long-term financial planning versus,
759–762
models, 772
sources of short-term borrowing, 769–772
Short-term financing decisions, 769–772
bank loans, 770
commercial paper, 618, 640–641
long-term financing versus, 364
short-term financing plan, 769–772
stretching payables, 768
Short-termism, 319, 854, 880–881
Short-term tax-exempts, 802–803
Shoven, J. B., 561n
Shutterstock, 396
Shyam-Sunder, L., 398n, 482 n
“Siamese twins,” 337, 337n
Sidel, R., 415n
Siegel, D. R., 414n, 837 n
Siemens, 174, 182, 305, 413
Sight drafts, 791
Sigma-Aldrich, 813
Signaling, 372, 380, 414–415. See also
Information effect
Simkins, B. J., 680, 680n, 698
Sindelar, J. L., 401
Singal, V., 865
Singapore Exchange (SGX), 682
Singh, R., 392n
Singleton, K. J., 615
Sinking funds, 624
Sithe Global, 855
Sivakumar, R., 849n
Size factor, in three-factor model, 208–210
Skeel, D., 862n
Skinner, Douglas J., 411n, 426 n, 428, 430
Slavic, P., 251n
Small business. See also Mergers
forms of organization, 6
small-firm effect in three-factor model,
208–210
Small Business Administration (SBA), 607,
802 n
Small-firm effect, 208–210, 336–337
Smart, S. B., 395n
Smit, H., 590n, 592
Smith, Clifford W., Jr., 668, 674n, 806
Smith, J. K., 791n
Smith, R. L., 791n
Smithson, C. H., 698
Société Générale, 695
Soft rationing, 122–123
Sogo, 882
So, J., 651n
Sole proprietorships, 6
Sony, 77, 135–136, 174, 182, 330 –331, 331, 873 n
Southern California Edison, 640
Southern Company, 3
South Jersey Industries Inc., 87
Southwestern Bell, 848
Southwest Gas Corp., 87
Sovereign bonds
default risk, 67–69
sovereign debt crisis, 68–69, 375
Spark Energy, 396
Spark spread, 583