654 Index
Gross profit, 5
Guideline companies approach, 618
Handy and Harman Inc., 58–59
Hardware, 150–155, 537–539
Hartmarx Corporation, 408, 409
Headcount schedule, 287–288
Hedge(s)/hedging, 356, 358–375, 389–393. See
also Derivative(s)
accounting (current GAAP requirements),
389–393
cash f low, 391–392
choosing appropriate, 451– 454
cross-hedge, 440
decision factors, 370–375
fair value, 390–391
foreign-currency, 359, 361–370, 438
interest rate, 438, 449– 451
with internal offsetting balances or cash f lows,
358–361
natural, 359
of net investments in foreign operations, 392–393
risk management alternatives for foreign-
currency denominated transactions, 356,
358–375
Heinz Company (H.J.), 43, 376, 377
Henry Schein Inc., 388
High-low analysis (method of cost behavior
estimation), 118–119
Holden, James, 570
Horizontal merger, 563
Hostile takeover attempts, 519–520
Human Genome Sciences, 576
Hybrid instruments, 434
Illinois Tool Works Inc., 384, 385
Imperial Holly, 46
Income approach (valuation), 594, 609– 618
Income statement, 5, 10, 11, 14, 23, 24, 25,
39–54, 56, 90
adjusted for changing prices, 410
alternative formats, 40– 42, 46
analysis, 601, 602
budgeted, 186 –187
nonrecurring items, 39–54, 56, 90
spreadsheet pro forma, 158
Index arbitrage, 425
Industry(ies):
analysis, business plan section, 268–269
analysis, for valuation, 597
comparisons for valuation, 604
financial ratios, comparing composites for, 29
information technology budgets for specific,
546
Inf lation, 356, 407– 413
Information technology:
accounting information systems, 544–545
accounting sites, 172
advanced technology, 559
application service providers (ASPs), 556
application software, 156 –164, 543–544
in banking and finance, 545–546
budgets for, by industr y, 546
database, 161, 548–549, 550
data warehousing, 549–551
decision support systems/executive
information systems, 556 –559
electronic commerce, 554–555
financial management sites, 172
firewall, 553
for the firm, 536 –560
four th generation programming languages, 541
future, 170–171
hardware, 150–155, 537–539
historical perspective, 536 –537
for the individual, 149–172
information systems paradigm, 540
Internet /intranet /extranets, 541–543,
553–554
justifying cost of, 553
networks/communication, 164–170, 546 –548
personal finance software, 161, 162
presentation graphics software, 160
project management software, 161–164
search engines, 171
software, 540–541
spreadsheet software, 157–160
strategy, 552–553
types of information systems, 540
useful Web sites, 171–172, 560
Web hosting, 556
word processing, 156 –157
Initial public offerings (IPOs), 460– 461,
473– 477
Interest(s):
complete termination of, 341
control, 622
minority, 622– 623
pooling of, 584
transferability of, 228, 235–237
Interest expense, 296
Interest-free loans, 328–330
Interest rate swaps/hedges, 438, 449– 451
Interface Inc., 358, 359, 373
Internal audit organization, 528–529
Internal control, 528
Internal rate of return (IRR), 309–311
International Trade Commission (ITC), 123
Internet /intranet /extranets, 166 –167, 541–543,
553–554
accounting sites, 172
domain types, 167
financial management sites, 172
hypertext link, 167
vs. intranet /extranets, 553–554
pr ivacy, 169