Index I-21
bre44380_idx_I1-I24 21 09/30/15 01:56 PM
Vivint, 855
VIX (Market Volatility Index), 173n,
562–563, 564
Vlasic, Bill, 815n
Vo d a fon e, 813
Volatility. See also Beta
bond, 54
implied, 562–563
Volcker, Paul, 50
Volkswagen (VW), 342–343, 773–774
Volpin, P., 875n
Voluntary Employees’ Beneficiary Association
(VEBA), 862
Volvo, 835
Voting procedures, 360–361
Voting rights
common stock, 360–361
preferred stock, 363
restricted, as takeover defense, 834, 834
in Switzerland, 360
VRDNs (variable-rate demand notes), 803, 804
Vulture funds, 370W
Wait and decide option, 585, 586
Waiting period defense, 834
Wakeman, L. M., 668
Wald, J. K., 478n
Wall Street (f i l m), 11
Wall Street Journal, The, 75, 77n
“Wall Street Walk,” 306
Walmart, 3, 3, 4, 7, 9–10, 66, 174, 181, 196,
19 7, 200, 200–201, 712, 737, 738, 739
Walt Disney Company, 831
Walter Energy, 503
Warga, A., 627n
Warner-Chilcott, 829–830
Warner, J. B., 333n, 470 n
Wa r ra nt s
bond-warrant package, 633–634
Chinese warrant bubble, 564
nature of, 365
valuing, 561–562, 633
Warther, V. A., 414n
Washington Mutual, 858
Washington Public Power Supply System
(WPPSS), 803n
Water and Power Development Authority
(WAPDA), 649
Weak form of market efficiency, 332,
344–345, 888
Weighted-average cost of capital (WACC),
221–226, 443, 448–452, 739. See also
Company cost of capital
adjusting
debt ratios and business risks differ,
503–505
rebalancing, 506
unlevering and relevering cost of
equity, 505
after-tax, 225, 228–229, 452, 491–496,
512 –514
in business valuation process, 491–496
calculating, 228–229, 492–493
common mistakes in using, 495–496
company versus industry, 503Unlevering beta, 505, 506n, 576 n
Unsecured debt, 621
Unsystematic risk. See Specific (diversifiable)
riskV
Vale, 2, 3, 835
Va Linux, 388, 390n
Va lu at ion
of abandonment option, 581
a n nu it y. See Annuities
bond. See Bond valuation
business. See Business valuation process
by certainty equivalents, 236–237
by comparables, 79–81, 230
debt. See Debt valuation
e qu it y. See Equity valuation
financial lease, 660–665
option, 536–541, 547–567. See also Black-
Scholes option pricing model
warrant, 561–562, 633
Valuation horizon, 95–96, 498–500
Value additivity, 439, 888–889
conglomerate mergers, 841–842
def ined, 184 –185
diversification and, 184–185
economic value added (EVA), 313–314
Value at risk (VAR), 613–614
Value Line, 86n
Value maximization
agency problem in, 12–13
as goal of corporation, 7–13, 17–18,
249–271, 732–733
Value stocks, 205–206
Van Binsbergen, J. H., 335n
Van Dijk, M. A., 337n
Vanguard 500 Index Fund, 335
Vanguard Index Funds, 369
Vanguard Total Stock Market index, 369
Variability
diversification in reducing, 174–176
measu r i ng, 172 –173
Variable-rate demand notes (VRDNs), 803,
804
Variance
def i ne d, 169 –170
in measuring portfolio risk, 169–172
por t fol io, 169 –172 , 173 –180
Venture capital, 379–383
market for, 381–383
stages of financing, 379–380
Verizon, 772, 773, 813
Vermaelen, T., 415n
Veronesi, P., 392n
Ver tical mergers, 814 –815, 816 –817
Viacom, 834
Viasys Health Care, 851
Villalonga, B., 857n
Violations of absolute priority, 862
Virgin America, 396
Virgin Atlantic, 230
Virgin Group, 230
Vishny, R. W., 303n, 429 n, 851 n, 852 n, 871,
871 n, 885
Viskanta, T., 723n
Viswanathan, S., 835, 835nU
UBS, 360, 375, 695–696, 819
Underwriters, 371, 385, 387–389
Undiversifiable risk. See Market risk
Unfunded pension obligations, 366
Unicredit, 819
Uniform-price auctions, 393–394
Union Pacific, 2, 3, 4, 79, 80, 227, 227–229,
227 n, 452, 452
Unique risk. See Specific (diversifiable) risk
United Airlines (UAL), 607n, 680, 858
United Auto Workers (UAW), 859
United Health Group Inc., 563
United Kingdom
accounting standards in, 733–734
Anglo-Saxon financial system in,
733–734, 867–871, 870–871
electricity prices, 583–584
forward currency market, 713
inflation in, 65
nominal versus real interest rates, 715–717
United States
Anglo-Saxon financial system in,
733–734, 867–871
bankruptcy regulation, 858–863
beta for selected stocks, 181
company financing in, 868–871
compounding intervals in, 48–50
debt ceiling increases, 68
deficit crisis of 2010, 68
dividend yields, 168–169, 169
historic performance of capital markets,
162 –169
inflation in, 60–61, 65
initial public offerings (IPOs) in,
384–394, 392
market risk premia in, 168–169
mergers in, 814
merger waves, 813, 836–837
payout policy in, 410, 411
standard deviation of stocks in, 174
stock market returns, 170
venture capital financing in, 381–383
U.S. Airways, 827
U.S. Department of Justice, 389n, 832–833
U.S. Department of Veterans’ Affairs (Vinnie
Mae), 802n
U.S. Federal Communications Commission
(FCC), 827
U.S. Federal Reserve, 228, 374, 375, 623
U.S. Federal Trade Commission (FTC), 827
U.S. Food and Drug Administration (FDA),
266–269, 590
U.S. Nuclear Regulatory Commission, 2–3
U.S. Robotics, 850
U.S. Securities and Exchange Commission
(SEC), 10–12, 310–311, 385–386, 859
accounting and reporting standards,
733–734
proposed Rule 14a-11, 361n
Rule 10b-18, 413n
Rule 144A, 399, 629
well-known seasoned issuer (WKSI), 394n
U.S. Shoe Corp., 628
U.S. Steel, 630, 631n
U.S. Supreme Court, 86n
U.S. Surface Transportation Board (STB), 88