Thursday, February 01, 2007

SMith-masulis table for fin 402

Implied Cash Flow Change




Leverage Change


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


Convertible sale

Investment decrease


Debt for debt exchange

Bond Sale to retire debt

Investment increase



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

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