|Net present value of growth opportunities|
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Definition of Net present value of growth opportunities
Net present value of growth opportunities
A model valuing a firm in which net present value of new
The sum of all the interest options in your policy, including interest.
An amount of money invested plus the interest earned on that money.
The net present value analysis of an asset if financed solely by equity
a method of allocating joint cost to joint products using a
The amount of cash payable on a benefit.
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
An asset’s cost basis minus accumulated depreciation.
The value of an asset as carried on the balance sheet of a
An asset’s original cost, less any depreciation that has been subsequently incurred.
net worth of the firm’s assets or liabilities according
Generally speaking, these terms
The theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals:
The ratio of stockholder equity to the average number of common shares. Book value
The book value of a company divided by the number of shares
an activity that is necessary for the operation of the business but for which a customer would not want to pay
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
An amount the insurance company will pay if the policyholder ends a whole life
Cash Surrender Value
This is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications.
Cash Surrender Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Committee, AIMR Performance Presentation Standards Implementation Committee
The Association for Investment Management and Research (AIMR)'s Performance presentation Standards Implementation
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Also called the Gordon-Shapiro model, an application of the dividend discount
Also called parity value, the value of a convertible security if it is converted immediately.
the approach to product costing that determines
Critical Growth Periods
Times in a company's history when growth is essential and without which survival of the business might be in jeopardy.
dividend growth method
a method of computing the cost
Dividend growth model
A model wherein dividends are assumed to be at a constant rate in perpetuity.
Economic Value Added (EVA)
Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge
economic value added (EVA)
a measure of the extent to which income exceeds the dollar cost of capital; calculated
economic value added (EVA)
Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
The amount of advantage over a current market transaction provided by an in-the-money
The value that an asset is expected to have at the time it is sold at a predetermined
The weighted average of a probability distribution.
The value of the possible outcomes of a variable weighted by the
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Offsetting exposures in one currency with exposures in the same or another currency,
Extraordinary positive value
A positive net present value.
See: Par value.
The nominal value of a security. Also called the par value.
The maturity value of a security. Also known as par value,
Payment at the maturity of the bond. Also called par value or maturity value.
The payoff value of a bond upon maturity. Also called par value. See principal.
The nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument.
Fair market value
The price that an asset or service will fetch on the open market.
Fair Market Value
The highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact.
The amount at which an asset could be purchased or sold or a liability incurred or
Firm's net value of debt
Total firm value minus total firm debt.
Future investment opportunities
The options to identify additional, more valuable investment opportunities
The amount of cash at a specified date in the future that is equivalent in value to a specified
The amount a given payment, or series of payments, will be worth
the amount to which one or more sums of
The value that a sum of money (the present value) earning
Amount to which an investment will grow after earning interest.
The amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor.
Mutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities.
A money manager who seeks to buy stocks that are typically selling at relatively high P/E
Opportunity to invest in profitable projects.
A phase of development in which a company experiences rapid earnings growth as it produces
an estimate of the increase expected in dividends
Compound annual growth rate for the number of full fiscal years shown. If there is a negative
Common stock of a company that has an opportunity to invest money and earn more than the
Internal growth rate
Maximum rate a firm can expand without outside source of funding. growth generated
internal growth rate
Maximum rate of growth without external financing.
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
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
net amount that could be realized by selling the assets of a firm after paying the debt.
The net proceeds (after taxes and expenses) of selling the assets
net proceeds that would be realized by selling the firm’s assets and paying off its creditors.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
1) The price at which a security is trading and could presumably be purchased or sold.
The price at which a product or service could be sold on the open market.
A quoted market price per unit times the number of units being valued. Synonymous
market value added
Market value of equity minus book value.
market-value balance sheet
Financial statement that uses the market value of all assets and liabilities.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Related: par value.
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.
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
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