SMith-masulis table for fin 402

		Implied Cash Flow Change
		Negative	Zero	Positive
Leverage Change	Negative	Common Sale Dividend Decrease -	Common to retire debt Convertible bond to retire debt Common for pfd exchange Common for debt exchange Call of convertibles -	Calls of non convertible debt
	Zero	Convertible sale Investment decrease -	Debt for debt exchange Bond Sale to retire debt	Investment increase +
	Positive	Preferred sale Debt sale	Common repurchase financed with debt Bond for Common Exchange Bond for Pfd exchange +	Common repurchase Dividend increase Dividend initiations Special dividends +

Red = predicted negative abnormal returns

Black = no prediction or no abnormal returns expected

Yellow = predicted positive abnormal return

If you are viewing on a black and white monitor: the ones with + are positive, - are negative

The Modern Theory Of Corporate Finance by Cliff Smith