A value equal to income after taxes plus noncash expenses (i.e. depreciation).
What is "Cash Flow"?
100
=√(Σ(D-¯D)^2 xP)
What is "Standard Deviation"?
100
Common stock, preferred stock, bonds, and retained earnings.
What is "Financial Capital"?
200
P=D/K-g
What is the "Price of common stock/common equity"
200
The cost of alternative sources of financing to the firm.
What is "Cost of Capital"
200
A value that indicates the time period required to recoup an intial investment. It does not include time value of money concept.
What is "Payback"
200
A representative value from a probability distribution arrived at by multiplying each outcome by the associated probability and summing up the values.
What is "Expected Value"
200
A measure of risk determination that is computed by dividing the standard deviation for a series of numbers by the expected value.
What is "Coefficient of Variation"?
300
Y = {Annual Interest Payment + [(Principal - Price of bond)/number of years to maturity}/[0.6(Price of the bond)+0.4(principal payment)]
What is "Approximate Yield to Maturity"
300
The ownership interest in the firm. It may be represented by new shares of retained earnings. The same as net worth.
What is "Common Stock Equity"
300
MACRS
What is "Modified Accelerated Cost Recovery System"
300
A measure of uncertainty about the outcome from a given event.
What is "Risk"?
300
Present value of the cash inflows minus the present value of the cash outflows with the cost of capital used as a discount rate.
What is "Net Present Value"
400
K=Y (1-T)
What is "Aftertax cost of debt"
400
A model for determining the value of a share of stock by taking the present value of an expected stream of future dividends.
What is "Dividend Valuation Model"?
400
ADR
What is "Asset Depreciation Range"?
400
An aversion or dislike of risk.
What is "Riske-Averse"?
400
The selection of on choice precludes the selection of any other competitive choice.
What is "Mutually Exclusive"?
500
K=Rf + ß(Km - Rf)
What is "Capital Asset Pricing Model"
500
The computed cost of capital determined by multiplying the cost of each item in the optimal capital structure by its weighted representation in the overall capital structure and summing up the results.
What is "Weighted Average Cost of Capital"?
500
A discounted cash flow method for evaluating capital budgeting projects. It is a discount rate that makes the present value of the cash inflows equal to the present value of the cash outflows.
What is "Internal Rate of Return"?
500
A measure of volatility of returns on an individual stock relative to the market.