Glossary - variables Capital expenses

Capital lease
Abnormal return (excess return) Capital rationing
Capped call
Accelerated depreciation Cash flow to equity investors
Cash flow to the firm
Accounting beta Cash slack
Accrual accounting Cashflow return on investment (CFROI)
Acquisition premium Catastrophe bond
Acquisition price Certainty equivalent (cash flow)
Adjustable rate preferred stock Chapter 11
Agency costs Clientele effect
Allocation Collateral bond
American options Combination leases
Amortizable life Commercial paper
Annual percentage rate (APR) Commodity bond
Annuity Competitive risk
Arbitrage position Compound options
Arbitrage principle Compounding
Asset beta Concentration banking
Asset-backed borrowing Consol bond
Assets-in-place Consolidation (in mergers)
Bad debts
Balance sheet Consolidation (in accounting statements)
Balloon payment bonds Contingent liabilities
Bankrupt Contingent value rights
Barrier options Continuing value
Baumol model Continuous market
Best efforts guarantee Continuous price process
Beta Conversion premium
Binomial option pricing model Convertible bond
Book value
Bottom-up betas conversion ratio (in convertible bond)
Building the book Convertible preferred stock
Call market Cost of capital
Callable bonds (debt) Cost of debt (pre-tax)
Cap Cost of debt (after-tax)
Cost of equity
Cumulative abnormal (excess) returns
(cars)
Current assets
Current PE
Debentures
Debt Exchangeable for Common Stock FIFO
(decs). Financing expenses
Debt Firm
Default risk Firm-specific risk
Default spread Fixed assets
Deferred tax asset Fixed-rate bond
Depreciation Float
Floating (exchange) rates
Direct cost of bankruptcy Floating rate bond
Cost of bankruptcy (direct) Floor
Disbursement float Forward contracts
Discount rate Forward PE
Discounting Forward price (rate)
Divestiture value Free cash flow to equity
Divestiture Free cash flow to the firm
Dividend capture (arbitrage) Free cash flows (Jensen)
Futures contract
Dividend declaration date Golden parachute
Dividend payment date Goodwill
Dividend payout ratio Gordon growth model
Dividend yield Greenmail
Down-and-out option Growing annuity
Dual currency bond Growing perpetuity
Duration Growth assets
Economic exposure Historical (risk) premium
Economic order quantity (EOQ) Historical cost
Economic Value Added (EVA) Holder-of-record date
Efficient Frontier Hurdle rate
Enterprise value Hybrid securities
Equity approach Implied premium
Equity carve out Income bonds
(ECO) Income statement
Equity risk Incremental cash flows
Equity Indirect costs of bankruptcy
Eurobonds Inflation rate
Eurodollar bonds Inflation-indexed treasury bond
European options In-process R&D
Euroyen bonds Intangible assets
Excess return (abnormal return) Interest rate parity
Ex-dividend date Internal equity
Internal rate of return (IRR)
Exercise Price (Strike Price) International Fisher Effect
Exit value Jump price proces
Ex-rights price Knockout option
External financing Kurtosis
Factor beta Leveraged buyout
Leveraged recapitalization Operating lease
Levered beta Operating leverage
LIFO reserve Opportunity costs
LIFO Option delta
Line of credit Option
Liquidating dividends Original-issue deep discount bond
Liquidation value Payback
Lockbox system PEG ratio
Perpetuity
Major bracket investment bankers Poison pills
Majority active investment Pooling accounting
Management buyouts Preferred stock
Marginal investor Preferred stock
Marginal return on equity (capital) Price/book value
Marginal tax rate Price/earnings ratio (PE)
Market capitalization (market cap) Price/sales ratio (PS)
Market conversion value Principal exchange linked bonds
Market efficiency (perls
Market risk Private equity Equity
Market value Private placement
Markowitz portfolios Privately negotiated repurchases
Merger Probit
Mezzanine bracket Processing float
Miller-Orr model Product cannibalization
Minority interest Profitability index
Minority, active investment Project risk
Modified internal rate of return (MIRR) Purchase accounting
Mortgage bond Purchase of assets
Mutually exclusive (projects) Purchasing power parity
Equivalent annuities Pure play
Near-cash investments Put-call parity
Negative pledge clause Puttable bonds
Net debt payments Rainbow options
Net float Real cash flow
Net lease Real interest rate
Net operating losses (nols) Real interest rate
Net present value (NPV) Nominal interest rate
Net present value profile Real options
Nominal cash flow Recapitalization
Nominal interest rate Red herring
Non-cash working capital Regular dividend
Notes Reinvestment rate
Offering price Replicating portfolio
Open market repurchase Repo rate
Operating expenses Repurchase agreement
Operating exposure (repo)
Repurchase tender offer Treasury bills
Reverse repurchase agreement (reverse Treasury stock approach
repo) Trust preferred stock
Rights offering Underwriting guarantee
Unlevered beta
Rights-on price Unsecured bonds
Riskless rate Up-and-out option
Road shows Value ratio
Safety inventory Value/sales ratio (VS)
Scenario analysis Venture capital method
Sector risk Venture capitalist
Secured debt Warrants
Seed-money venture capital
Serial bonds
Sinking funds
Skewness
Special dividend
Spin off
Split off
Split up
Spot rate
Standard deviation
Stand-by guarantees
Standstill agreement
Start-up venture capital
Statement of cash flows
Step-down floating rate bond
Step-up floating rate bond
Stock dividends
Stock split
Straight line depreciation
Strike Price (Exercise Price)
Subordinated debentures
Subscription price
Super-majority amendment
Synergy
Synthetic rating
Tender offer
Terminal price (value)
Time line
Tobin�s Q
Tombstone advertisement
Tracking stock
Trailing PE
Transactions exposure
Translation exposure