Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
book value |
the net worth of common equity according to a firm's balance sheet |
|
|
liquidation value |
net amount that can be realized by selling the assets of a firm and paying off the debt |
|
|
replacement cost |
cost to replace a firm's assets |
|
|
tobin's q |
ratio of market value of the firm to replacement cost |
|
|
intrinsic value |
the present value of a firm's expected future net cash flows discounted by the required rate of return |
|
|
market capitalization rate |
the market-consensus estimate of the appropriate discount rate for a firm's cash flows |
|
|
dividend discount model |
a formula for the intrinsic value of a firm equal to the present value of all expected future dividends |
|
|
constant-growth DDM |
a form of the dividend discount model that assumes dividends will grow at a constant rate |
|
|
dividend payout ratio |
percentage of earnings paid out as dividends |
|
|
plowback ratio |
the proportion of the firm's earnings that is reinvested in the business (and not paid out as dividends) |
|
|
present value of growth opportunities |
net present value of a firm's future investments |
|
|
two-stage DDM |
dividend discount model in which dividend growth is assumed to level off only as some future date |
|
|
price-earnings multiple |
the ratio of a stock's price to its earnings per share |
|
|
PEG ratio |
ratio of P/E multiple to earnings growth rate |
|
|
earnings management |
the practice of using flexibility in accounting rules to manipulate the apparent profitability of the firm |
