BUSF_A01.qxd

Index

Draper, P. 399

Drury, C. 121, 243

Dryden, M.M. 263

DuPont Corporation 129

earnings of companies seeprofits

earnings per share 60, 137, 302 –3,

338

easyJet plc 136, 400

economic risk from exchange rate

movements 422 – 4, 431, 501

economic value for small businesses

447

economic value added (EVA) 137,

140 –2, 501

economies of scale 389 –91

efficiency of capital markets 184 –5,

197, 253, 256 –71, 303, 501

semi-strongform of 259, 264 – 6,

504

strongform of 259, 266 –7, 332,

504

weakform of 259 – 64, 505

efficiency of foreign exchange

markets 417–18

efficient frontier 194 – 6, 501

efficient marketparadox 267

El-Masry, A. 16

Elton, E.J. 336

EMI Group plc 337

Enron Corporation 51–2

environmental factors 426

equity finance 12, 59, 219 –23, 501

factors for businesses to consider

221–2

factors for potential investors to

consider 222–3

raising of 223 –32

Eriotis, N. 310

Ernst and Young 142

ethical constraints 426

Ettridge, M. 338

euro currency 411

Eurobonds 239, 501

European Union 218

ex dividend278 –9, 336, 501

exchange rate costs 369, 373, 380

exchange rate risk 371–2, 379– 81,

418, 430, 501

exchange rates

determinants of 412–13

management of 418

theoretical explanations for

414 –17, 429 –30

executiveand non-executivedirectors

11–12

expected returns from investments

and loans 206 –7, 295, 299

expected value (EV) 162 – 6, 173,

175 – 6, 186 –7, 189 –90, 501

‘expert’ investors 266 –7

factoring 371

Fama, E. 203, 263 –5, 334 – 6

Ferdinand, Rio 244

Ferreira, M. and M. 428

Ferrovial company 395, 400

filter rules 260, 263

finance leases 242–3, 248, 277– 8, 501

financial accounting, role of 112

financial risk 297, 501

financial statements 39– 46, 67

quality of 52

Financial Times136, 235

all-share index 203

financing costs 117

see also cost of capital

Finnerty, J. 266

First Choice Holidays plc 25, 339,

424

First Group plc 395

Firth, M. 265 – 6

Fisher, Irving 31, 197, 302

Fisher, L. 265

Fisher effect (on real interest rates)

415 –16, 501

international 416, 502

flat yield 236

footballers and football clubs 244,

401, 443

see alsoAmerican football

Ford Motor Company 401–2

foreign exchange 411–18, 429

dealing in 412

problems with 418 –25

see alsoexchange rates

foreign exchange markets

efficiency of 417–18

need for 411–12

Forum for Private Businesses 435

forward exchange contracts 412,

417, 420 –1, 430, 501

Frank, M. 314

Franks, J.R. 399

French, K. 203, 264, 334 – 6

Fuller, K. 399

Game Group plc 396

Game Station Ltd 396

GB Airways Ltd 136, 400

gearing 14, 51, 59, 282–3, 286,

295 –317, 401

capital/financial and operating

types 306 –7

differences between countries

310

differences between industrial

sectors 310

evidence on 308 –11

Modigliani and Miller’s view of

300 – 6, 309 –13, 316 –17

optimum level of 299, 310

for small businesses 447

General Motors Corporation 235

Givaudan company 401

Gleason, K. 428

going concernconvention 48 –9

Goodcare, A. 315

goodwill 141, 361, 370, 373 – 4, 379

Gordon growth model 280

government securities 204

Goyal, V. 314

Graham, J. 101–2, 143, 205, 280 –3,

310, 314, 316, 336

Granada plc 7

grants from public funds 245, 249

Green, T. 266

Greene King plc 134

Gregory, A. 205, 399

gross profit margin 54

growth of companies 23

Gruber, M.J. 336

half-yearly financial statements 9

Hamada, R.S. 309

Hand, J. 335 – 6

Harris, P. 399

Harvey, C.R. 101–2, 143, 205, 280 –3,

310, 314, 316

Hatzopoulos, P.D. 99–100, 126, 134,

439–40

hedging

against inflation 223

in money markets 421, 431

herd insinct 267

Higgs Report 11

hire purchase (HP) 244 –5, 249, 502

Hirshleifer, J. 31

historic cost 47– 8, 141

Hofler, R.A. 310

Homaifar, G. 309 –10

Honda Motor Europe plc 367

Hope, A. 121

Hughes, C. 136

hurdle rates 92, 94, 101, 203

Ibbotson, R.C. 204 –5

Ikenberry, D.L. 334 –5

Imperial Chemicals Ltd 401

income measurement 49

income statements 42 –3, 64, 502

indifference curves 166 – 8

industrial buildings, tax relief on

118 –19

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