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Amortization factor |
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Definition of Amortization factorAmortization factorThe pool factor implied by the scheduled amortization assuming no prepayemts.
Related Terms:ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. PPF (periodic perpetuity factor)a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity. AmortizationThe repayment of a loan by installments. Annuity factorPresent value of $1 paid for each of t periods. Conversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each Discount factorPresent value of $1 received at a stated future date. FactorA financial institution that buys a firm's accounts receivables and collects the debt. Factor analysisA statistical procedure that seeks to explain a certain phenomenon, such as the return on a Factor modelA way of decomposing the factors that influence a security's rate of return into common and Factor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of FactoringSale of a firm's accounts receivable to a financial institution known as a factor. Loan amortization scheduleThe schedule for repaying the interest and principal on a loan. Maturity factoringfactoring arrangement that provides collection and insurance of accounts receivable. Multifactor CAPMA version of the capital asset pricing model derived by Merton that includes extramarket Negative amortizationA loan repayment schedule in which the outstanding principal balance of the loan Net benefit to leverage factorA linear approximation of a factor, T*, that enables one to operationalize the Old-line factoringfactoring arrangement that provides collection, insurance, and finance for accounts receivable. One-factor APTA special case of the arbitrage pricing theory that is derived from the one-factor model by Planned amortization class CMO1) One class of CMO that carries the most stable cash flows and the Pool factorThe outstanding principal balance divided by the original principal balance with the result Present value factorfactor used to calculate an estimate of the present value of an amount to be received in Reported factorThe pool factor as reported by the bond buyer for a given amortization period. Single factor modelA model of security returns that acknowledges only one common factor. Two-factor modelBlack's zero-beta version of the capital asset pricing model. AmortizationSee depreciation, but usually in relation to assets attached to leased property. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Limiting factorThe production resource that, as a result of scarce resources, limits the production of goods amortizationThis term has two quite different meanings. First, it may critical success factors (CSF)any item (such as quality, customer AmortizationReduction in value of an asset over some period for accounting AmortizationThe write-off of an asset over the period when the asset is used. This term FactoringThe sale of accounts receivable to a third party, with the third party bearing Factory overheadAll the costs incurred during the manufacturing process, minus the annuity factorPresent value of an annuity of $1 per period. discount factorPresent value of a $1 future payment. Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. AmortizationThe systematic and rational allocation of capitalized costs over their useful lives. Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working Extended Amortization PeriodAn amortization period that continues beyond a long-lived asset's economic useful life. Extended Amortization PeriodsAmortizing capitalized expenditures over estimated useful lives that are unduly optimistic. FactoringThe discounting, or sale at a discount, of receivables on a nonrecourse, notification Scrap factorAn anticipated loss percentage included in the bill of material and Shrinkage factorThe expected loss of some proportion of an item during the AmortizationThe reduction of debt by regular payments of interest and principal sufficient to pay off a loan by maturity. Amortization ScheduleA schedule that shows precisely how a loan will be repaid. The schedule gives the required payment on each specific date and shows how much of it constitutes interest and how much constitutes repayments of principal. FactorAn agent who buys and sells goods on behalf of others for a commission. FactoringType of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent. Interest FactorNumbers found in compound interest and annuity tables. Usually called the FVIF or PVIF. amortizationThe repayment of a loan by installments. Amortization (Credit Insurance)Refers to the reduction of debt by regular payments of interest and principal in order to pay off a loan by maturity.
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