Implications of Components of Income Excluded from Pro Forma Earnings for Future Profitability and Equity Valuation

This study addresses three research questions relating to total exclusions, special items, and other exclusions. Are each of these pro forma exclusion components forecasting irrelevant? Are each of the exclusion components value irrelevant? Are the valuation multiples on the exclusion components justified by their ability to forecast future profitability as predicted by the Ohlson (1999) model? Findings are generally consistent with the market-inefficiency results presented in Doyle et al. (2003) . Total exclusions are valued negatively by the market despite the prediction that total exclusions will be valued positively. Valuation results also suggest that stocks with positive other exclusions are overpriced. Copyright 2007 The Authors Journal compilation (c) 2007 Blackwell Publishing Ltd.

A hybrid constraint model for the routing and wavelength assignment problem

Abstract. In this paper we present a hybrid model for the demand acceptance variant of the routing and wavelength assignment problem in directed networks, an important benchmark problem in optical network design. Our solution uses a decomposition into a MIP model for the routing and optimization aspect, combined with a finite domain constraint model for the wavelength assignment. If a solution to the constraint problem is found, it provides an optimal solution to the overall problem. If the constraint problem is infeasible, we use an extended explanation technique to find a good relaxation of the problem which leads to a near optimal solution. Extensive experiments show that proven optimality is achieved for more than 99.8 % of all cases tested, while run-times are orders of magnitude smaller than the best known MIP solution.