|Net benefit to leverage factor|
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Definition of Net benefit to leverage factor
Net benefit to leverage factor
A linear approximation of a factor, T*, that enables one to operationalize the
Coverage against accidental death usually payable in addition to base amount of coverage.
An approximate measure of the liability of a plan in the event of a
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
a method of allocating joint cost to joint products using a
Automatic payment of moneys derived from a benefit.
An instruction that pays a cash amount upon the occurrence of a specific event.
The proportion of unemployment benefits paid to a company’s
The amount of cash payable on a benefit.
The proportion of total taxable wages for laid off
a listing of service departments in an order that begins with the one providing the most service
cash or nontaxable benefits
Rules set by the Chicago Board of Trade for determining the invoice price of each
The calculation and comparison of the costs and benefits of a policy or project.
cost-benefit analysis the analytical process of comparing the
relative costs and benefits that result from a specific course
The net present value of an investment divided by the investment's initial cost. Also called
critical success factors (CSF)
any item (such as quality, customer
Amount paid on death of an insured.
The amplification of the return earned on equity when an investment or firm is financed
Defined benefit plan
A pension plan in which the sponsor agrees to make specified dollar payments to
Defined Benefit Plan
A pension plan that pays out a predetermined dollar
degree of operating leverage
a factor that indicates how a percentage change in sales, from the existing or current
degree of operating leverage (DOL)
Percentage change in profits given a 1 percent change in sales.
Present value of $1 received at a stated future date.
Present value of a $1 future payment.
Equivalent annual benefit
The equivalent annual annuity for the net present value of an investment project.
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
Offsetting exposures in one currency with exposures in the same or another currency,
A financial institution that buys a firm's accounts receivables and collects the debt.
An agent who buys and sells goods on behalf of others for a commission.
A statistical procedure that seeks to explain a certain phenomenon, such as the return on a
A way of decomposing the factors that influence a security's rate of return into common and
Factor of Production
A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.
A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of
Sale of a firm's accounts receivable to a financial institution known as a factor.
The sale of accounts receivable to a third party, with the third party bearing
The discounting, or sale at a discount, of receivables on a nonrecourse, notification
Type 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.
All the costs incurred during the manufacturing process, minus the
Use of debt to increase the expected return on equity. Financial leverage is measured by
The equity (ownership) capital of a business can serve
Debt financing amplifies the effects of changes in operating income on the returns to stockholders.
Financial leverage clientele
A group of investors who have a preference for investing in firms that adhere to
Financial leverage ratios
Related: capitalization ratios.
Firm's net value of debt
Total firm value minus total firm debt.
Flat benefit formula
Method used to determine a participant's benefits in a defined benefit plan by
Highly leveraged transaction (HLT)
Bank loan to a highly leveraged firm.
Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can
Incremental costs and benefits
Costs and benefits that would occur if a particular course of action were
Numbers found in compound interest and annuity tables. Usually called the FVIF or PVIF.
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
Internet business model
a model that involves
a mechanism for sharing information and delivering data from corporate databases to the local-area network (LAN) desktops
The use of debt financing.
he use of debt financing.
The relationship between interest bearing debt and equity in a company(financial leverage) or the effect of fixed expense on after tax earnings(operating leverage).
A group of shareholders who, because of their personal leverage, seek to invest in
Measures of the relative contribution of stockholders and creditors, and of the firm's ability
Making transactions to adjust (rebalance) a firm's leverage ratio back to its target.
The beta of a leveraged required return; that is, the beta as adjusted for the degree of
The purchase of one business entity by another, largely using borrowed
Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use
leveraged buyout (LBO)
Acquisition of the firm by a private group using substantial borrowed funds.
Stock in a firm that relies on financial leverage. Holders of leveraged equity face the
A lease arrangement under which the lessor borrows a large proportion of the funds needed
A portfolio that includes risky assets purchased with funds borrowed.
A portfolio that includes risky assets purchased with funds borrowed.
Leveraged required return
The required return on an investment when the investment is financed partially by debt.
The production resource that, as a result of scarce resources, limits the production of goods
Some insurance companies include this benefit option at no cost to their policy holders. The insurer considers on a case to case basis, the need for insurance funds before death. If the insured can demonstrate a shortened life of less than two years and with some insurers one year, the insurer will consider releasing up to 50% or a maximum of $100,000 of the life insurance coverage held by the insured. Not all insurers offer this benefit for free. The need has resulted in specific stand alone living benefit/critical illness policies coming into existence. Look under "Different types of Life Insurance" for further information. You might have heard of "Viatical Settlements", the practice of seriously ill people selling the rights to their life insurance policies to third parties. This practice is common in the United States but has not caught on in Canada.
factoring arrangement that provides collection and insurance of accounts receivable.
School of economic thought stressing the importance of the money supply in the economy. Adherents believe that the economy is inherently stable, so that policy is best undertaken through adoption of a policy rule.
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.
Any measure of the economy's money supply.
See money base.
Gold held by governmental authorities as a financial asset.
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Actions taken by the central bank to change the supply of money and the interest rate and thereby affect economic activity.
Monetizing the Debt
See printing money.
A version of the capital asset pricing model derived by Merton that includes extramarket
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net advantage of refunding
The net present value of the savings from a refunding.
Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than
Net advantage to merging
The difference in total post- and pre-merger market value minus the cost of the merger.
net asset value
The value of all the holdings of a mutual fund, less the fund's liabilities.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net Cash after Operations
Cash flow available for debt service—the payment of interest and principal on loans. Generally calculated as cash provided by operating activities before interest
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
This is the difference between a day's last trade and the previous day's last trade.
net cost of normal spoilage
the cost of spoiled work less the estimated disposal value of that work
Net Domestic Product
GDP minus depreciation.
Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
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