652 Index
Cross-hedge, 440
Crugnale, Joey, 273
Cryomedical Sciences, 45
Currency, 67– 69, 92–93, 356 –375, 386 –389, 438
financial reporting of foreign-currency
denominated transactions, 356 –358
foreign exchange gains/losses, 92–93
futures, 368–369
hedging/risk management, 356, 358–375, 438
options, 365–368, 369
transaction/translation exposure, 67– 69
Customer analysis (business plan section), 269
Customer value proposition (CVP), 129, 130
Daft, Douglas, 575
DaimlerChrysler, 388, 569, 570, 582–583, 588
Dana, 61
Database systems/software, 161, 543, 548–549,
550
Data warehousing, 549–551
Dead End Inc., 584
Death taxes, 344
Debt:
cost of, 303–304, 606, 615– 616
long-term obligations, 22
ratio of, to equity, 26
Debt-free analysis (valuation), 605– 606
Decision analysis, and CVP analysis, 109–111
Decision support systems/executive information
systems, 556 –559
Dell Computer, 555
Delta Air Lines, 37–38, 414
Depreciation, 295
Derivatives, 361–370, 423– 455
call options, 443, 444– 445
case studies of debacles involving, 425, 432
Askin Capital Management, 428
Barings Bank, 425
lessons from, 432
Long-Term Capital Management (LTCM),
429– 432
Metallgesellschaft, 426 – 427
Orange County, California, 428
Procter and Gamble, 425– 426
Union Bank of Switzerland, 429
choosing appropriate hedge, 451– 454
equity swaps, 448
exchange-traded vs. over-the-counter, 452
for wards, 434– 436, 437– 440
futures, 434, 436 – 440
instruments, 434– 451
interest rate swaps/hedges, 438, 449– 451
market timing, 439
options, 434, 440– 442
put options, 445– 447
risk transfer using, 423, 424, 432
size of market, 433– 434
swaps, 434, 447– 449
synthetic cash /stock, 439
written call option, 444– 445
Desktop computers, 151
Detection Systems, 45
Development plan (business plan section),
279–281
Dibrell Brothers Inc., 68– 69
Digerati Inc., 579
Directed share program, 467
Direct equity methodology, 605– 606
Directors. See Board of directors
Discontinued operations, 47– 48, 49
Discounted cash f low (DCF), 300–301,
303–307, 609– 618
Discounted payback period rule, 308–309
Discount for lack of control, 622
Discount rate, 303–307, 613
Distribution strategy, 275
Dividends, 26, 339–340, 530–531, 579
Doom loop, 121
Dow Chemical Company, 364, 405
Due diligence checklist /examination outline,
466, 478– 498
“Dumping,” 123
Dupont analysis/formula, 30, 31Earnings, 35–101, 475, 525–526, 608– 609
adjustment to, for valuation purposes,
608– 609
analysis of, 35–101
annual reports referenced, 96 –98
Internet links, 95–96
nonrecurring items, 35–71
“other comprehensive income,” 71–72
smoothing, 525–526
sustainable (core/underlying), 72–96, 617
Eaton, Robert, 570
EBIT, 21, 26, 27
Eckel, Robert, 519
Economic value added (EVA), 311, 312
Electronic commerce, 168–169, 554–555
Electronic Data Interchange (EDI), 547, 548,
552
Electronic mail (e-mail), 165–166
Electronic Transaction Network (ETN/ W),
126 –148
ABC example, 126 –148
customer value proposition (CVP), 130
history, 127–130
transaction processing, 140–144
value system and strategy, 130–131
Employee stock ownership plans, 341–343
Engineered instruments, 434
Engineering studies, 213–214
Enterprise resource planning (ERP) systems, 544
Equity risk premium, 613
Escalon Medical Corporation, 54, 55, 57, 58
Estate planning, 343–347