|Basic IRR rule|
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Definition of Basic IRR rule
Basic IRR rule
Accept the project if irr is greater than the discount rate; reject the project is lower than the
The requirement that all pool information, as specified under the PSA Uniform Practices, in a
Intentional misstatements or omissions of amounts or disclosures in
IRS rules used to allocate income on export sales to a foreign sales corporation.
Legislation under which interest, dividends, or capital gains earned on assets you transfer to your spouse will be treated as your own for tax purposes. Interest or dividends relating to property transferred to children under 18 also will be attributed back to you. The exception to this rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you.
In a balance of payments, the basic balance is the net balance of the combination of the current
Key strategies a firm intends to pursue in carrying out its business plan.
This important ratio equals the net
Percentage of earnings relative to total assets; indication of how
An investment decision rule in which the cash flows are discounted at an
A discounted cash flow technique used for investment appraisal that calculates the effective cost of capital that produces a net present value of zero from a series of future cash flows and an
The precise discount rate that makes the
The discount rate that equates the present value of the net cash
the expected or actual rate of
Discount rate at which project NPV = 0.
See internal rate of return.
Irrational call option
The implied call imbedded in the MBS. Identified as irrational because the call is
The Modigliani and Miller theorem that a firm's capital structure is irrelevant to the firm's
Legal designation that cannot be contested. (See beneficiary)
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
MM's proposition I (debt irrelevance proposition)
The value of a firm is unaffected by its capital structure.
Proposal that the money supply be increased at a steady rate equal approximately to the real rate of growth of the economy. Contrast with discretionary policy.
A technical trading strategy that combines mechanical rules, such as the CRISMA
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
A formula for determining policy. Contrast with discretionary policy.
See monetarist rule.
SEC rule allowing qualified institutional buyers to buy and trade unregistered securities.
rule enacted in 1982 that permits firms to file shelf registration statements.
Rule of 72
This is a very important rule to know. The rule is that the number 72 divided by the rate of return of your investment equals the number of years it takes for your investment to double.
Argument about whether policy authorities should be allowed to undertake discretionary policy action as they see fit or should be replaced by robots programmed to set policy by following specific formulas. See discretionary policy, policy rule.
SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors
Specifies the permitted minimum or maximum quantity of securities that can be delivered to
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