The Portable MBA in Finance and Accounting, 3rd Edition

Index 659

Timeline, 281, 282
Time/motion studies, 214
Time value of money (TVOM) analysis, 299–301
Time Warner/AOL, 561, 563, 586
Titan International Inc., 370–371, 388
Toys “R” Us Inc., 40, 42, 43
Transaction processing, 140–144
Transfer pricing, 404– 407
Transfer of risk, 424, 432
Travelers Inc., 575
Trimark Holdings, 45
Turnover ratios, 18

UAL Inc., 364
“Ubiquitous” computing, 538
Underlying earnings. See Sustainable earnings
Under writers, 464– 466
United Airlines, 563, 576
United States government restrictions on
business practices associated with foreign
subsidiaries and governments, 356, 413– 415
UNIX operating system, 538
Unsystematic risk, 615
Unusual charges, 85, 94
USAir, 563, 576

Vacation home, renting (tax impact), 335–338
Valuation of business, 593– 625
adjustment to earnings for purposes of,
608– 609
appraisal of fair market value, 604– 606
approaches to value (asset /income/market),
594
band of investment, 607
buyers (different types of ), 594–595
comparison to industry averages, 604
control interest, 622
control premium, 619
cost of capital, 606 – 608
direct equity methodology, 605– 606
discounted cash f low method, 609– 618
discount for lack of control, 622
discount for lack of liquidity, 621– 622
discount for lack of marketability, 622
fair market value, 595, 604– 606
financial buyers, 594–596
financial statement analysis, 599– 603
guideline companies approach, 618
industry analysis, 597
Internet links, 625

investment risk, 596

marketability, 622

market value of invested capital (MVIC), 608

minority interests, 622– 623

“mom and pop” business, 595

principle of alternatives, 596

principle of substitution, 596

process overview, 595–597

publicly traded guideline-companies method,

618– 621

ratio analysis, 601– 603

reconciliation of methods, 621

standards, 623

strategic/investment buyers, 595

Value creation in M&A, 573–581

Value engineering, 623– 624

Varco, 93–94

Variable overhead indices, 211–212

Variance analysis/reports (budgets), 179, 180,

212–213

Veeco Instruments, 43

Vertical integration, 576, 577

Vertical merger, 563

Vishay Intertechnology Inc., 364

Visual fit (method of cost behavior estimation),

118–119

Walker, James, 260

Wal-Mart, 552–553, 554, 559

Warrants, 445

Wealth, maximizing, 291–292

Weighted average cost of capital (WACC),

304–305, 616

Western Digital Corporation, 354

Wide area network (WAN), 165, 166, 537, 547

Windfall profit and windfall tax, 295–296

Wireless modems, 164

Word processing software, 156 –157

World Market Watch, 34

World Wide Web, 167–168. See also

Internet /intranet /extranets

W.W. Grainger, 555

Xerox Palo Alto Research Center, 538

Y2K, 541

York International Corporation, 369

ZETA, 32

Z score, 31–32