Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Third Edition

index

Abandonment option

explanation of, 820

extensions and implications of, 822

payoff on, 820–821

problems in valuing, 822

Accounting

accrual, 42, 43

acquisition, 34, 728–730, 842

pooling, 34

purchase, 34

Accounting balance sheets, 228

Accounting betas

explanation of, 205–210

in private firms, 669–670

Accounting book value. See Book value

Accounting principles

asset measurement and, 29–30

earnings and profitability, 42–47

liability and equity, 36–41

risk measurement and, 47–48

Accounting standards

book values and, 513

differences in, 53, 54

Accounting statements, 27–29

Accounts payable, 36

Accounts receivable, 31

Accrual accounting, 42, 44

Acid test ratios, 49–50

Acquisition accounting

changes in, 942

explanation of, 34, 728–729

goodwill and, 729–730

Acquisition premium, 704

Acquisitions. See also Takeovers

analysis of, 8–9

book equity adjustments, 513

capital expenses and, 261–262

charges related to, 730

choosing target firm and valuing control/synergy in, 711–724

classification of, 702–703

cost of ignoring, 263

deciding price of, 725–726

development of strategy for, 706–711

diversity in, 706–707

firms involved in, 18

friendly, 703, 704, 709

hostile, 703–704, 709–710

managerial self-interest and, 710–711

methods of accounting for, 243–244

outcome of, 723

payment for, 726–730

of poorly managed firms, 708–710

process of, 703–704

steps in, 705–706

synergy and, 707–708

tax factors for, 720, 721, 727

of undervalued firms, 706

valuation of target firm and, 713–723

writing off costs ...