I- 2 Index
bre44380_idx_I1-I24 2 09/30/15 01:56 PM
signaling and, 372, 380, 414–415
Bek, J., 335n
Bellicum Pharmaceuticals, 396
Bell Laboratories, 848
BellSouth, 848, 848n
Benartzi, L., 207n
Benefit-cost ratio, 120n
Benetton, 6
Benmelech, E., 655n
Benveniste, L. M., 393n, 401
Berger, P., 857n
Bergman, N. K., 655n
Berkshire Hathaway, 10n, 293, 294, 411, 844
Bermuda options, 566
Bernard, V. L., 752
Berndt, A., 600n
Bertrand, M., 304n, 482, 482n, 879–880, 880n
Best-efforts underwriting, 387
Beta, 888
asset, 229, 230–232
calculating, 182–183
cash-f low, 230
changes in capital structure and, 445–446
company, 222–225
def ined, 181
earnings, 230
estimating, 225–227
fixed-cost, 231–232
impact of borrowing on, 197–199
industry, 227
in market model, 333
market risk and, 181–184
portfolio, 227, 229
portfolio risk and, 181–184, 199–202
project, 222–225
relevering, 505, 506n
unlevering, 505, 506n, 576 n
Betton, S., 838
Bhagat, S., 851n
Bhandari, J. S., 858n, 865
Bharath, S. T., 861n
BHP Billiton, 174, 182
Bhutto, Benazir, 650
Biases, in accounting measures of
per for ma nce, 314 –320
Bid price, 49
Big Mac Index, 714, 714
Big-ticket leases, 666–667
Bikhchandani, S., 896n
Binomial method of option pricing, 552–557,
578–579
Black-Scholes model and, 561, 589
decision trees and, 556–557
defined, 552
general binomial method, 555–556
two-step, 554–555
Biomet, 853
Bizjak, J. M., 311n
BK Vision, 360
Black, B., 383n
Black, Fischer, 203n, 204n, 205 n, 212, 548,
548 n, 557–564, 558n, 567
Black Monday (1987), 173
Black-Scholes option pricing model, 547,
557–564, 574–576, 587–588, 589, 889
binomial method and, 561, 589
development of, 557–558
risk of an option, 560as intermediaries, 370–371
international, 799
loans. See Bank loans
multicurrency accounts, 799
paying for services, 799
payment mechanism and, 372
pooling risk and, 373
time deposits and certificates of deposit,
803, 804
types, 370–371, 371n
Bankers’ acceptances (BAs), 791, 803, 804
Bankers Trust, 345
Bank holding company, 640n
Banking industry, 818–819
Bank loans, 2, 636–640, 770
calculating payments, 31–32
commitment and, 637
debt covenants, 640
interest rates, 637
maturity of, 637
security of, 639
syndicated, 637–639
Bank of America, 304, 366–367, 368n, 370,
371, 371n, 374, 601, 624, 737, 739, 739, 819
Bank of America Merrill Lynch, 388, 638
Bank of America National Trust and Savings
Association, 621
Bank of International Settlements, 696n
Bankruptcy, 858–863
alternative procedures, 861–863
Chrysler, 861, 862
control rights in, 359
costs of, 467–471
direct versus indirect, 470–471
evidence of, 470
largest, 858
nature of, 467–468
workouts, 861
Bankruptcy Reform Act of 1978, 858, 859n
Banque Paribas, 819
Barberis, N., 207n, 340 n, 350
Barclays Bank, 305
Barclays Capital, 388
Baring Brothers, 304n, 696
Barrier options, 566
Barwise, P., 295
BASF, 80
Basis risk, 693–695
Baskin, J., 855n
Bausch & Lomb, 293
Bautista, A. J., 664n
Baxter International, 849
Bayerische Vereinsbank, 819
Beam Inc., 813
Bearer bonds, 47n, 621
Bearer shares, 360
Bear Stearns, 374, 623
Beaver, William H., 610, 610n, 611n
Bebchuk, L. A., 321, 862n, 878 n
Bechtel, 385
Becht, M., 884
Behavioral finance, 340–344. See also
Information effect
dividend payments in, 413–415, 422
limits to arbitrage, 342–343
market efficiency and, 340–344
market timing and, 482
sentiment, 341–342Arrangers, 637–638
Articles of incorporation, 5
Ashanti Goldfields, 674n
Asian financial system, 877–878
Asian (average) options, 566
Asked price, bond, 49
Asked yield to maturity, 49
Asquith, Paul A., 344n, 348, 348n, 474 n,
627, 627n
Asset-backed securities (ABS), 618, 622–623,
635, 636, 641
Asset beta
calculating, 229
defined, 229
determinants of, 230–232
Asset restructuring, 834
Asset sales, 851
Asset stripping, 11
Asset turnover ratio, 741–742
Assignment, 639n
Astra Zeneca, 80, 80, 830
Asymmetric information, 479–481, 826–827
Atmos Energy Corp., 87
Atos, 851
AT&T, 813, 827, 848, 848, 849, 849n
At-the-money options, 561n
Auction markets, nature of, 76–78
Auction-rate preferred stock, 805
Auditors, monitoring by, 306
Auerbach, A. J., 837n
Australia
elimination of tax penalty on
dividends, 424
imputation tax system, 425–426, 478n
Automated Clearing House (ACH), 797–798
Automatic debit, 797–798
Autonomy, 4
Average payment period, 766
Aviation Week , 680
B
BA (bankers’ acceptances), 791, 803, 804
Babus, A., 896n
Bachelier, Louis, 329n, 527
Backdating, 563
Bain Capital, 844
Bait and switch game, in financial distress, 474
Baker, G. P., 857, 857n, 865
Baker Hughes, 813
Baker, M., 342n, 350, 421n, 482 n
Balance sheet
common-size, 748–750
debt ratios, 357–358, 358, 460, 481, 506n,
744 –745
described, 734–736
example, 763
Balloon payments, 637
Banco Central Hispanico, 819
Banco Santander, 819
Bandler, J., 563n
Ba n k(s). See also Bank loans; specific banks
borrowing and lending via, 370–371
concentration accounts, 798–799
in corporate financing, 370–371
direct payment, 797–798
in financial markets, 867–871