I-4
Bolded locators refer to Online Chapters 18–23A
AAA rating 138, 145–6, 200, 731
abandonment options 417–18
ABC inventory control system 637
account analysis 664
accounting firms 437
accounting profit, versus cash flows 357–61
accounting rate of return 315–17
pros and cons 317
accounting-based methods 315–17, 329
accounts payable (A/P) 31–2, 574, 581,
671–6
developments 675–6
purpose 671
accounts receivable (A/R) 31, 574
effective management 640 – 2
monitoring quality 648 – 51
standards and terms 640 – 7
accredited investors 458, 501
accrual-based approach 30
accrued expenses (accruals) 32
accumulated depreciation 32
acquisition 369, 451–2
accounting treatment 746 – 8
costs 726
EPS accretion (acquiring company)
733
international activity 721–5
reasons for 725 – 34
regulation 748 – 51
transaction details 741 – 5
acquisition method 746 – 8
actively managed mutual funds 251
activity ratios 44–6
administrators see voluntary
administrators
adverse price risk 806
after-tax earnings 791 – 2
ageing of accounts receivable 649 – 50
ageing schedules 650
agency cost/contracting model 548–9
agency costs 19, 21, 23, 23–5, 484–6,
548–9
managerial 727
agency costs of debt 485
agency costs of (outside) equity 485
using debt 485agency problems 23, 501, 700
dividend payment solution 554
principal–agent problems 314, 472
aggressive strategy 584–5
all-in rate 678
American call option 265
American depositary receipts (ADRs) 451
amortisation 100–3, 360, 516–19
angel capitalists/investors 169, 692 , 693
announcement date 537
annual interest 72, 98–9
annual percentage yield (APY) 99
annual returns 208
annuities 79, 81
see also mixed (cash flow) streams
annuity due 81, 84–6, 91
anti-competitiveness 748 – 50
anti-takeover devices 744
antitrust regulation 748 – 50
appreciation 439
appreciation (currency) 608, 611,
613–14
arbitrage 720 , 795 , 798
arbitrage pricing theory 410
arbitrage profit 610–11
no arbitrage 287, 612, 795
ask price 182, 614
asset management 179
asset sale 745
asset substitution 483–4
asset-backed lending see term lending
assets 31, 40, 173–4, 363–4, 408, 503,
509, 525, 525–6, 574, 574–6, 613, 635 ,
677 , 678 , 771 , 772 , 775–6, 805
asset class returns 202, 205
benefits–costs balance see futures
contracts
estimated returns, methods 227–36
future benefits 121–2
key operating assets 633 – 4
risk of single 230–4
$6,500 ‘instant asset write-off ’ 355–6
useful life of see depreciation
assets-to-equity (A/E) ratio 47, 50
asymmetric information 488
asymmetric information (hidden
information problem) 473, 549, 553at the money 267
audit trails 666
Australia
cross-border trading 724 – 5
financial sector compositions 437
private equity commitments 691 , 694
VC market 691 – 2 , 694
Australian Accounting Standards Board
(AASB) 30–1
Australian Bank Bill Swap Rate (BBSW)
506
Australian dollar 604–12
Australian government bonds 137
Australian Office of Financial
Management (AOFM) 136
Australian Payments Clearing
Association (APCA) 667
Australian Private Equity and Venture
Capital Association Limited (AVCAL)
689
Australian Prudential Regulation
Authority (APRA) 436
Australian Securities and Investments
Commission Act 2001 (Cth) 30, 443
Australian Securities and Investments
Commission (ASIC) 12–13, 179, 443,
501, 510, 751 , 762 , 765 , 767 , 772
deed administrator’s lodgement 770
Australian Securities Exchange (ASX) 12,
25, 143, 180, 181, 228, 261–2, 437
listing rules 444
operating efficiency 453
Australian Stock Exchange (ASX) 136
automated clearinghouse (ACH) debit
transfers 669–70
automated clearinghouse (ACH) system
667 , 669–70
automatic teller machine (ATM)
transactions 667
availability float 663
average age of accounts receivable 45
average age of inventory (AAI) 44, 629
average annual percentage rate (AAPR)
99
average collection period 45
average collection period (ACP) 29,
630 , 649SUBJECT INDEX
I-4