IndexRao, R. 336
Rappaport, A. 137
ratio analysis 53 – 67, 221
caution in interpretation of 63
limitations of 64 –5
for management of working
capital 358, 365 – 6, 372, 381
use for prediction of financial
failure 66
real options 143, 146
realisationconvention 47– 8
rebalancing of portfolios 269
Reckitt Benckiser plc 25, 134
redemption
of loan notes 237
of shares 14, 233
redemption dates 234 –5
redemption yield 236
Registrar of Companies 8 –9
Reinhart, W.J. 101
remittances between countries 426
reorder costs 361
reorder levels 365
repeating patterns 260 –1, 268
replacement decisions 130 –2, 145
required rates of return 140 –1, 270,
284
research and development costs
141
reserves 45
restructuring, corporate 141,
387– 404
Retail Prices Index (RPI) 120
return on capital employed (ROCE)
53 –5, 64, 137
maximisation of 22
return on ordinary share-holders’
funds 54
Ricci, C. 421– 4
rights issues 222 –3, 228 –32
pricing of 231
Rio Tinto plc 339, 395
risk 81, 503
as distinct from uncertainty 154
to future dividends 330
importance of taking account of
154
in investment appraisal 153 –76
on investment in securities 187–9
reduction of 158 –9, 390, 409–10
in relation to return 5, 185, 190 –1,
218 –19, 246, 297, 299
for small businesses 440 –1
specificand systematic165–6,
188–9, 195, 198, 427, 440, 447,
504
see alsobusiness risk; economic
risk; financial riskrisk analysis
for international investment 427
in practice 174, 176
risk aversion 95 – 6, 169–73, 186,
190, 311, 503
risk-free assets 196 –7, 503
risk premia 199, 205 –7
risk/return profiles 189–94
Ritter, J. 228
Roberts, H. 259
Roll, R. 265
Rolls-Royce plc 100, 134, 199, 339,
355
Ross, S.A. 205 – 6
Royal Bank of Scotland plc 225
Royal Dutch Shell plc 339
Rutterford, J. 205
Ryan, H. 142
Ryanair Holdings plc 337Saga Ltd 401
sale and leaseback 244, 248 –9,
503–4
sales revenue 138, 307, 315
ratio to to capital employed
53–4
satisficing 23 – 4, 504
scenario building 158, 504
Schlarbaum, G.G. 336
Schooley, D. 339
seasoned equity offerings (SEOs)
225, 227, 229, 504
secondary capital market 223,
252–71, 278, 504
secured loans 15, 219, 245, 504
securitisation 241–2, 248, 504
security market line (SML)
199–200, 504
sell-offs between established
businesses 402, 504
sensitivity analysis 154 –9, 174 –5,
504
separation theorem 31, 504
derivation of 35 – 40
serial correlation tests 263
settlement periods 56 –7, 372
Severn Trent plc 25
Shapiro, A.C. 415 –16, 427
share issues 46, 185, 221–9, 314 –15,
331
in depressed markets 228
see alsorights issues
share options 26
share prices 13, 326 –7, 332
effect of dividends on 335
shareholder value analysis (SVA)
137– 40, 504
shareholders 8 –10, 14 –15, 219 –20capital gains for 331
contribution made to business
by 45
prefererred habitatsof 332
return on funds of 54
safeguarding the interests of
9–10, 20, 26–8, 307– 8
wealth maximisation for 22 – 8,
173, 253, 269–70, 283,
298 –300, 327, 387, 410, 437
wealth related to NPV 86, 137
see alsoinstitutional investors
shares
nominal value of 220, 233
ownership of 10 –11
redemption of 14, 233
repurchase of 333 – 4, 338, 504
transferability of 7, 438
types 12 –14
undervaluation of 313 –15
see alsoshare issues; share prices
Sharpe, W. 200
Shell seeRoyal Dutch Shell
Shepherd Neame Ltd 443
Shlingemann, F. 399
short-termism 27, 54 –5, 504
Siddiqi, M. 337
signalling 308, 331–2, 335 – 6, 504
Singh, M. 428
Sinquefield, R. 204 –5
Skinner, D. 334
small businesses 434 –51
definition of 434 –5
dividends paid by 448
failure of 436 –7
importance of 435 – 6
investment decisions made by
439–40
organisation of 438
sources of finance for 441– 4
taxation of 438 –9, 447
valuation of 444 –7
working capital for 448
Smith, C. 309, 314, 337
special purpose entities (SPEs) 51
speed of reaction to market
information 259, 265 – 6, 270
spin-offs 402–3
Standard and Poor’s 235
standard deviation 186 –91, 206,
504
Stanley, K.L. 336
Stark, A. 335
Staunton, M. 204, 206 –7, 288
Stegemoller, M. 399
Stern, Stewart and Company (SS)
140 –2
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