BUSF_A01.qxd

Index

Mehrotra, V. 314

Memoranda of Association 8

mergers 388 – 400, 403, 502

appraisals of 394

financing of 391– 4

hostileand friendly394 –9

international 400

reasons for 388 –91

reduction in number of 393, 400

regulation of 395 – 6

steps towards 396 –7

success and failure of 398 – 400

mezzaninefinance 402

Mikkelson, W. 314

Miller, M.H. 300 – 6, 309 –13,

316 –17, 327– 40, 345 – 6

mission 135

Modigliani, F. 300 – 6, 309–13,

316 –17, 327– 40, 345 – 6

Moeller, S. 399

Moizer, P. 336

‘Monday effects’ 264

money

changes in value of 47

see alsoinflation

time value of 80 –1

see alsodiscounting

money market hedges 421, 431,

502

money measurement convention 47

monopolies 391

Monopolies and Mergers

Commission seeCompetition

Commission

Monsoon plc 337

Moody’s credit rating agency 235

Morris, R. 265

Morrison, D. 448

Mougoue, M. 336

Myers, S. 313

net asset turnover ratio 53 – 4

net operating profit after tax

(NOPAT) 140 –1

net present value (NPV) 80 –101,

104, 111–13, 126 –7, 136 –7,

144, 203, 502

adjusted for tax effect of debt

finance 316

advantages of 82

compared with ARR 97–9

compared with IRR 88 –94

compared with PBR 96 –7

and shareholder wealth 86

for small businesses 439 – 40

systematic understatement of

115 –16, 121

Netter, J. 399

netting on foreign exchange

transactions 420, 430

Next plc 102, 116, 338

Nissan Motors UK Ltd 368

Nissim, D. 335 – 6

no creditperiod ratio 58 –9

Nokia 435

Northcott, D. 100, 137, 143, 174, 205

Northern Rock plc 223

offers by prospectus 226

Ooi, T.S. 24 –5, 100

O’Leary, Michael 337

operating cash cycle 352 –3, 381,

502–3

operating leases 242

operating profit margin 138

operating profit margin ratio 55

opportunity cash flows 116

opportunity cost of capital 30, 276,

283, 285, 329, 503

options 15 –16, 503

see alsocurrency options; real

options

order quantities, optimal 365

ordinary shares 12–13, 246 –7, 278,

289 –90, 503

use in mergers 392

Organisation for Economic

Cooperation and

Development (OECD) 10

Osborne, P. 121

Oswald, D. 338

outsourcing 435, 503

over-the-counter (OTC) market

256

overdrafts 59, 375 –9

overreaction 263 – 4

overseas investment and financing

409

overtrading 358 –9, 503

Ozkan, A. 282, 310

par values 220, 503

Parmalat SpA 52

Partch, M. 314

Paudyal, K. 399

payback period (PBR) 94 –102,

104 –5, 440, 503

compared with NPV 96 –7

pecking-order theory 313 –18, 333,

339, 503

pegging of currencies 411, 413

perfectmarkets 256

Pettit, R.R. 335 – 6

pharmaceutical manufacturers 22

Picou, A. 264

Pike, R.H. 24 –5, 99–101,133, 205

placing of shares 226 –7

plant and machinery, tax relief on

118

‘plc’ description 8

PLUS market 443

Pointon, J. 116, 205, 274, 280, 288

Polk, C. 207

portfolio theory and portfolio effect

164, 185 –209, 503

international 419, 425, 428 –31

position analysis 136, 503

post audits 133 – 4, 503

Powell, G. 335

pre-emption rights 229

preference shares 13 –14, 232 – 4,

247, 278, 289, 503

preferences, trading-off of 166 –7

Premier Oil plc 240

Appendix 1 Present value table

price/earnings (P/E) ratio 60 –1,

221, 445 –6

pricing models seearbitrage pricing

model; capital asset pricing

model

primary capital market 218, 252,

503

primary ratio 54

private equity funds 16 –18, 388,

400, 503

private limited companies 8, 438

probabilities, use of 159 – 62

profit and loss accountsseeincome

statements

profit-taking 269

profitability index 127, 503

profitability ratios 53 –5, 67

profits

definition of 25, 46, 48

economic 140

maximisation of 22

reinvestment of 13

retention of 45, 219, 222–5, 281,

315, 331, 439 – 42

taxable 117–19

prudenceconvention 48, 141

public companies 8

public interest 391

public issues of shares 227–9

puchasing power parities (PPPs)

414 –15, 426, 503

putoptions 422

Quest plc 401

quick assets ratio 58

Raab, R. 265

Ramaswamy, K. 336

Rank Group plc 238

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