|Net financing cost|
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Definition of Net financing cost
Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing
Related:net financing cost.
Related: net financing cost
Related: net financing cost
Related:net financing cost
Same as PV, but usually includes a subtraction for an initial cash outlay.
Schedule of depreciation rates allowed for tax purposes.
The argument that specifies that the various agency costs create a complex environment in
The incremental costs of having an agent make decisions for a principal.
Total costs, explicit and implicit.
Methods of financing in which lenders and equity investors look principally to the
A firm's required payout to the bondholders and to the stockholders expressed as a
An intercompany loan channeled through a bank.
The argument that expected indirect and direct bankruptcy costs offset the other
Interim financing of one sort or another used to solidify a position until more permanent
costs that increase with increases in the level of investment in current assets.
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of
Cost of capital
The required return for a capital budgeting project.
Cost of funds
Interest rate associated with borrowing money.
Cost of lease financing
A lease's internal rate of return.
Cost of limited partner capital
The discount rate that equates the after-tax inflows with outflows for capital
The net present value of an investment divided by the investment's initial cost. Also called
New debt obtained by a firm during the Chapter 11 bankruptcy process.
Equivalent annual cost
The equivalent cost per year of owning an asset over its entire life.
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
The difference between the execution price of a security and the price that would have
Offsetting exposures in one currency with exposures in the same or another currency,
Federal Financing Bank
A federal institution that lends to a wide array of federal credit agencies funds it
Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
Decisions concerning the liabilities and stockholders' equity side of the firm's balance
Firm's net value of debt
Total firm value minus total firm debt.
A cost that is fixed in total for a given period of time and for given production levels.
costs, both implied and direct, associated with a transaction. Such costs include time, effort,
Incremental costs and benefits
costs and benefits that would occur if a particular course of action were
Transaction costs that include the assessment of the investment merits of a financial asset.
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
Market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
Market timing costs
costs that arise from price movement of the stock during the time of the transaction
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Multi-option financing facility
A syndicated confirmed credit line with attached options.
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 (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 benefit to leverage factor
A linear approximation of a factor, T*, that enables one to operationalize the
Net book value
The current book value of an asset or liability; that is, its original book value net of any
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 errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
Sum of disbursement float and collection float.
The company's total earnings, reflecting revenues adjusted for costs of doing business,
Gross, or total, investment minus depreciation.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
The period of time between the end of the discount period and the date payment is due.
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net profit margin
net income divided by sales; the amount of each sales dollar left over after all expenses
Net salvage value
The after-tax net cash flow for terminating the project.
Net working capital
Current assets minus current liabilities. Often simply referred to as working capital.
Common stockholders' equity which consists of common stock, surplus, and retained earnings.
Reducing transfers of funds between subsidiaries or separate companies to a net amount.
To get or bring in as a net; to clear as profit.
financing that is not shown as a liability in a company's balance sheet.
Opportunity cost of capital
Expected return that is foregone by investing in a project rather than in
The difference in the performance of an actual investment and a desired investment
Reducing fund transfers between affiliates to only a netted amount. netting can be done on
Planned financing program
Program of short-term and long-term financing as outlined in the corporate
Price impact costs
Related: market impact costs
Production payment financing
A method of nonrecourse asset-based financing in which a specified
cost to replace a firm's assets.
Round-trip transactions costs
costs of completing a transaction, including commissions, market impact
The minimum available return that will trigger an immunization strategy in a contingent
costs associated with locating a counterparty to a trade, including explicit costs (such as
costs that fall with increases in the level of investment in current assets.
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
costs that have been incurred and cannot be reversed.
Threshold for refinancing
The point when the WAC of an MBS is at a level to induce homeowners to
costs of buying and selling marketable securities and borrowing. Trading costs include
The time, effort, and money necessary, including such things as commission fees and the
True interest cost
For a security such as commercial paper that is sold on a discount basis, the coupon rate
A cost that is directly proportional to the volume of output produced. When production is zero,
Weighted average cost of capital
Expected return on a portfolio of all the firm's securities. Used as a hurdle
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
An asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc.
Cost of goods sold
The cost of merchandise that a company sold this year. For manufacturing companies, the cost of raw
MACRS (Modified Accelerated Cost Recovery System)
A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes).
The profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
A method of costing in which all fixed and variable production costs are charged to products or services using an allocation base.
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