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Net Pay |
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Definition of Net PayNet PayThe amount of an employeeâ€™s wages payable after all tax and other deductions have been removed.
Related Terms:Payments nettingReducing fund transfers between affiliates to only a netted amount. netting can be done on PaycardA credit card into which a company directly deposits an employee's net pay. Unclaimed Paynet pay not collected by an employee, which is typically transferred NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. Accounts payableMoney owed to suppliers. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Coupon paymentsA bond's interest payments. Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Date of paymentDate dividend checks are mailed. Delivery versus paymentA transaction in which the buyer's payment for securities is due at the time of Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Dividend payout ratioPercentage of earnings paid out as dividends. European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exposure nettingOffsetting exposures in one currency with exposures in the same or another currency, Feasible target payout ratiospayout ratios that are consistent with the availability of excess funds to make FHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination Firm's net value of debtTotal firm value minus total firm debt. Fixed-rate payerIn an interest rate swap the counterparty who pays a fixed rate, usually in exchange for a Floating-rate payerIn an interest rate swap, the counterparty who pays a rate based on a reference rate, Full-payout leaseSee: financial lease. Graduated-payment mortgages (GPMs)A type of stepped-payment loan in which the borrower's payments Interest paymentsContractual debt payments based on the coupon rate of interest and the principal amount. International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Market (IMM)A division of the CME established in 1972 for trading financial Lag response of prepaymentsThere is typically a lag of about three months between the time the weighted Level payThe characteristic of the scheduled principal and interest payments due under a mortgage such that Monetary goldGold held by governmental authorities as a financial asset. Monetary policyActions taken by the Board of Governors of the Federal Reserve System to influence the Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net advantage of refundingThe net present value of the savings from a refunding. Net advantage to leasingThe net present value of entering into a lease financing arrangement rather than Net advantage to mergingThe 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 Net assetsThe difference between total assets on the one hand and current liabilities and noncapitalized longterm Net benefit to leverage factorA linear approximation of a factor, T*, that enables one to operationalize the Net book valueThe current book value of an asset or liability; that is, its original book value net of any Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements. Net changeThis is the difference between a day's last trade and the previous day's last trade. Net errors and omissionsIn balance of payments accounting, net errors and omissions record the statistical Net financing costAlso called the cost of carry or, simply, carry, the difference between the cost of financing Net floatSum of disbursement float and collection float. Net incomeThe company's total earnings, reflecting revenues adjusted for costs of doing business, Net investmentGross, or total, investment minus depreciation. Net leaseA lease arrangement under which the lessee is responsible for all property taxes, maintenance Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Net periodThe 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 opportunitiesA model valuing a firm in which net present value of new Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Net present value ruleAn investment is worth making if it has a positive NPV. Projects with negative NPVs Net profit marginnet income divided by sales; the amount of each sales dollar left over after all expenses Net salvage valueThe after-tax net cash flow for terminating the project. Net working capitalCurrent assets minus current liabilities. Often simply referred to as working capital. Net worthCommon stockholders' equity which consists of common stock, surplus, and retained earnings. NettingReducing transfers of funds between subsidiaries or separate companies to a net amount. Netting outTo get or bring in as a net; to clear as profit. Payable through draftsA method of making payment that is used to maintain control over payments made PayablesRelated: Accounts payable. PaybackThe length of time it takes to recover the initial cost of a project, without regard to the time value of money. PaydownIn a Treasury refunding, the amount by which the par value of the securities maturing exceeds that Payment dateThe date on which each shareholder of record will be sent a check for the declared dividend. Payment floatCompany-written checks that have not yet cleared. Payments patternescribes the lagged collection pattern of receivables, for instance the probability that a Payout ratioGenerally, the proportion of earnings paid out to the common stockholders as cash dividends. Pay-upThe loss of cash resulting from a swap into higher price bonds or the need/willingness of a bank or Payment-In-Kind (PIK)bond A bond that gives the issuer an option (during an initial period) either to make Prepayment speedAlso called speed, the estimated rate at which mortgagors pay off their loans ahead of Prepaymentspayments made in excess of scheduled mortgage principal repayments. Production payment financingA method of nonrecourse asset-based financing in which a specified Safety-net returnThe minimum available return that will trigger an immunization strategy in a contingent SIMEX (Singapore International Monetary Exchange)A leading futures and options exchange in Singapore. Single-payment bondA bond that will make only one payment of principal and interest. Take-or-pay contractA contract that obligates the purchaser to take any product that is offered to it (and pay Target payout ratioA firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a Zero prepaymentassumption The assumption of payment of scheduled principal and interest with no payments. ACCOUNTS PAYABLEAmounts a company owes to creditors. NET INCOMEThe profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales. NET SALES (revenue)The amount sold after customersâ€™ returns, sales discounts, and other allowances are taken away from RATIO OF NET INCOME TO NET SALESA ratio that shows how much net income (profit) a company made on each dollar of net sales. Hereâ€™s the formula: RATIO OF NET SALES TO NET INCOMEA ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way: Net present value (NPV)A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment. Net profitSee operating profit. PaybackA method of investment appraisal that calculates the number of years taken for the cash flows from an investment to cover the initial capital outlay. PrepaymentA payment made in advance of when it is treated as an expense for profit purposes. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually Accounts payable involves the receipt of an invoice from the company providing the services or goods. Accrued expenses payableExpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. Bonds payableAmounts owed by the company that have been formalized by a legal document called a bond. Interest payableThe amount of interest that is owed but has not been paid at the end of a period. Loans payableAmounts that have been loaned to the company and that it still owes. Net incomeThe last line of the Income Statement; it represents the amount that the company earned during a specified period. Notes payableAmounts owed by the company that have been formalized by a legal document called a note. Payment dateThe date established for the payment of a declared dividend. Payroll expenseThe amount paid to employees for services rendered; synonymous with salary expense and wage expense.
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