1
For a more detailed discussion of the EBITDA measure, see Eastman (1997).
2
In addition to the traditional capital expenditures (i.e., changes in property, plant, and equipment), P&G also has cash flows related to investment securities and acquisitions. These investments are long-term and are hence part of P&G’s investment activities cash outflow of $6,835 million.
3
Note that cash taxes require taking the tax expense and either increasing this to reflect any decrease in deferred taxes (that is, the payment this period of tax expense recorded in a prior period) or decreasing this amount to reflect any increase in deferred taxes (that is, the deferment of some of the tax expense).
4
See McConville (1996).
5
For the period investigated, a statement of changes of financial position (on a working capital basis) was required to be reported prior to 1988.
6
George Akerlof, Michael Spence, and Joseph Stiglitz shared the 2001 Nobel Memorial Prize in Economic Sciences for their work in the analysis of markets with asymmetric information.
7
For example, in Japan the foreign market is nicknamed the “Samurai market,” in the United Kingdom the “Bulldog market,” in the Netherlands the “Rembrandt market,” and in Spain the “Matador market.”
8
This distinction between notes and bonds is not precisely true, but is consistent with common usage of the terms note and bond. In fact, notes and bonds are distinguished by whether or not there is an indenture agreement, a legal contract specifying ...

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