BUSF_A01.qxd

Index

inflation 47, 81, 120 –1, 144, 380, 502

forecasts of 121

hedging against 223

initial public offerings (IPOs)

225 –9, 502

inside information and insider

dealing 10, 266 –7

institutional investors 10 –11, 222,

235, 303 – 4, 440

integer programming 129, 502

interest cover ratio 60

interest foregone 81

interest rate parity 416 –17, 502

interest rate risk 238 –9, 502

interest rate swaps 239, 502

interest rates

on loan notes 237–9

risk-free 196, 203 – 4, 207, 503

internal rate of return (IRR) 87–94,

99 –101, 104, 203, 439 – 40,

502

International Accounting Standards

Board 42

International Financial Reporting

Standards 9, 42, 64

internationalisation of business 11,

408 –31

reasons for 409–11

risk associated with 427–9

inventories 359 – 68, 381–2, 448

models of 361–5

practical management of 365 – 6

inventories turnover period ratio

56

investment appraisal 153 –76

alternative techniques of 80 –99

and corporate objectives 99 –100

data for 133

international 425 –7, 431

methods used in practice 99–103,

105

multiple methods of 100

objectives of 113

and strategic planning 135 –7

investment decisions

implementation and monitoring

of effects of 133

in practice 133 – 4

for small businesses 439 – 40

investment opportunities 79– 80

and cash flows 337

comparison of 82

identification of 132 –3

lasting for more than one year

83 –5

investment overseas 174

investment in securities 187–9, 195,

206, 208

investors’ ratios 60 –1, 67, 221, 233,

236

‘irrational’ behaviour 264, 268

Iskander-Datta, M. 400

issue costs 221–2, 228 –9, 233, 237,

240, 313, 315, 331

issuing houses 226

ITV Digital plc 7

Jaffe, J. 266

Jaguar Cars 401–2

Jarvis plc 227

JD Wetherspoon plc 25 – 6, 354 –5

Jensen, M. 24, 265, 308

JP Jenkins Ltd 443

Julio, B. 334 –5

junk bonds 235, 401, 502

just-in-time systems 366

Kaplan, S.N. 311

Kaplanis, E. 427– 8

Kendall, M.G. 261

Kester, W.C. 310

Kim, J. 338

Kingfisher plc 339

KPMG 399

Kumar, A. 336

Ladbrokes plc 134

Laidlaw International Inc. 395

Lamont, O. 207

land and buildings, sale and

leaseback of 244

Land Rover company 401–2

Landsman, W. 335 – 6

law of one price 414 –15, 502

Lease, R.C. 336

leasing 242 –5

see alsosale and leaseback

Lee, I. 228

Leeds United FC 244, 401

lending by businesses 29 –30

leverage 14

see alsogearing

leveraged buy-outs 401

Lewellen, W.G. 336

liabilities, concealment of 51

Library House 442

‘Limited’, use of term 8, 438

limited companies 6 –9

limited liability 7, 223

Limmack, R.J. 399

linear programming (LP) 128 –9, 502

liquidation 502

of businesses 14 –15, 220, 222,

304

of investments 223, 232, 234, 239,

253, 441

liquidity 58, 332 –3

maintenance of 357

need for 356 –7

liquidity ratios 57–9, 67

listed companies 6 –7, 225 – 6, 443

Litzenberger, R. 336

loan financing 59

see alsosecured loans; term loans

loan notes 14, 46, 184, 217, 234 – 40,

247– 8, 275 – 6, 287–9, 294, 297,

502

convertible 240, 281

perpetual 277

use in mergers 392

Lockhead, S. 228

London Stock Exchange (LSE) 6,

9–12, 218, 225 – 6, 229, 232,

235, 253 – 6, 263, 267, 270, 396,

438, 440

dealing on 254 – 6

equity issues by listed businesses

226

members of 253 – 4

ownership of shares listed on

10 –11

long-term financing of companies

12–14, 17, 253

influences on decisions about 218

selecting the most appropriate

type of 245 – 6

sources of 217– 49

long-term stability of companies

22–3

losses, concealment of 51

Lotus Cars Ltd 402

McClure, K.G. 310

McKinsey and Co. 134

McLaney, E. 116, 205, 274, 280, 288

Mahate, A. 399

Majestic Wine plc 443

management buy-outs (MBOs)

401–2, 435, 502

managers, interests of 26 –7, 207,

270, 429

market makers 254

market portfolio 197, 199, 203, 502

expected return on 204 –5

marketable investments 142, 376

Marks and Spencer plc 25, 338

Marsh, P. 204, 206 –7, 282, 288

Marston, C.L. 27

Masulis, R. 309

matching of expenses to revenue

48 –9

Mathur, I. 428

Mayers, D. 265

mean value seeexpected value

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