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16 Cards in this Set
- Front
- Back
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cash flow
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NIAT + Depreciation
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ROA
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profits/assets
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ROE
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ROA x (assets/equity)
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value of bond
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i100(annuity) + 100(single sum)
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present value of purchase
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-i + tDx + Sx
k = i (1-t) |
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present value of lease
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-L (1-t)x
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"real" rate of return
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interest - inflation
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this year dividends
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dividends (1+g) / (k-g)
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dividends
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price x yield
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debenture
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unsecure bond with general claiming rights that cannot be collected as collateral
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indenture
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legal document outlining the rights of a bond holder and the duties of the issuing corporation involved
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companies - characteristics of bonds
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debenture
immediate call low/no premium low-rating long term |
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cumulative dividend
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not pai in a particular year but carried forward as an arrearage
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cumulative voting
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permits minority participation; a shareholder may cast all votes for one member of the board of directors
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advantages of a lease
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less susceptible of changes in the market
less of a business risk do not need to borrow money low capital |
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avantage of a purchase
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cheaper
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