Index
capital gains tax 223, 331
capital gearing 59 – 60, 67, 306 –7,
315 –17, 500
determinants of 315
capital market line (CML) 198 –9,
206, 500
capital rationing 126 –9, 145, 500 ,
502 , 504
capitalisation of expenses 51
Carlton plc 7
Carphone Warehouse Group plc
142
Carsberg, B. 121
cash, holding of 372 –9, 382 –3
costs and risks of 373
models for management of
374 –5
practical aspects of 376 –9
cash flow statements 45 – 6, 500
cash flows
as distinct from accounting flows
112 –14, 144
forecasting of 117
and investment opportunities
337
planning of 377–9
in real terms 120 –1
for small businesses 447
cash surpluses, short-term 376
Caterham Cars Ltd 402
Celec, S.E. 101
chance, role of 268 –9
‘chartists’ 260
Chen, S. 102, 137
Chicago Daily News 258
City Panel on Takeovers and
Mergers 396 –7
Clark, R.L. 102
Clayton, R. 310
clientele effect 306, 308, 332, 336,
339, 500
codes of practice 11–12, 396
Combined Code (on corporate
governance) 11–12, 26, 500
Companies House 8
competition, elimination or
reduction of 389
Competition Commission 395 – 6
concealment of losses or liabilities
51
consensus views 257–9
control of companies 222 –34, 239
conventions of accounting 47–9
convertible issues 240, 246, 248,
281, 500
Cooper, I. 427– 8
Coopers and Lybrand 398
corporate governance 9 –12, 500corporate objectives of companies
19–26, 32, 136, 437
corporation tax 139, 243, 331, 438 –9
correlation coefficient 190 –1, 500
Corven Ventures Ltd 402
cost of capital 117, 120, 126, 139,
274 –7, 289, 500
minimisation of 281
see alsoopportunity cost of
capital; weighted average
cost of capital
Costain Group plc 14, 229, 231
coupon rate 234, 501
covariance of expected returns 198,
501
covenants 238, 501
Craven, B.M. 27
creative accounting 50 –3, 67, 501
credit
granting or denying of 368 –70
taking of 379 – 80
credit ratings 235 – 6, 310
creditors of companies 14 –15
see alsotrade payables
creditworthiness of customers
369 –71
Crossland, M. 336
cum dividend278 –9, 336, 501
Cunningham, S.W. 263
currency futures 422, 430
currency options 421–2, 431, 501
currency swaps 424, 501
currentand non-currentassets 44,
501
current ratio 57– 8Dann, L. 265
Datta, S. 400
days trade payables 57
days trade receivables 56 –7
dealing charges 303 – 4
DeAngelo, H. 309, 334
DeAngelo, L. 334
Debenhams plc 17
debentures 234 –5, 247– 8, 275, 294,
501
debt financing, tax advantage of
306, 310
debtors seetrade receivables
decision-making, financial 17–21,
32
on investment and on financing
244
NPV as basis for 80
use of accounting information for
49–50
defensivesecurities 199
Dell Inc. 51Deloitte 314
Demirag, I. 27
Dempsey, M. 306, 336
depreciation 44 –5, 49, 114 –17
derivatives 15 –18, 256, 501
Dewenter, K. 336
Di Nino, V. 421– 4
Digital Look Ltd 204
Dimson, E. 204, 206 –7, 288
Director General of Fair Trading
395, 397
directors of companies 8 –14
restrictions on 10, 13, 229, 308
role and responsibilities of 9 –10,
14
types 11–12
disclosure 10
discount rates 204 –5
discounted cash flow yieldsee
internal rate of return
discounting over time and discount
rates 84 –7, 115 –17, 120 –1,
174, 204 –5, 244, 274 – 6, 283 – 8
for small businesses 439– 41
techniques of 100 –1
discounts
on forward currency transactions
417
on new shares 227
for prompt payment 369, 371, 374
dislocation of production 361
diversification 501
international 427–9
of security investment 164 –5,
176, 187–9, 195, 206, 208
for small businesses 440 –1
through mergers 390 –1, 400
within businesses 207, 390,
440 –1
divestmemts 400 – 4, 501
dividend cover ratio 61
dividend yield (DY) 61, 221, 444 –5
dividends 12–13, 222–3, 233,
278 – 81, 326 – 41
cancellation of 328
companies’ policies on 332 – 6,
339
effect on share prices 335
‘home-made’ 327–9
paid by small businesses 448
reinvestment of 339
as a residual 328
scale of 334 –5
timing of 329
traditional view of 329–30
Dr Pepper Snapple Group Inc. 403
Domino’s Pizza plc 443
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