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Definition of Non-Smoker Discount
In October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980's, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage. Today, most life insurance companies offer these discounts.
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control.
an amount or percentage deducted from an equity interest to reflect lack of marketability.
the rate of return on investment that would be required by a prudent investor to invest in an asset with a specific level risk. Also, a rate of return used to convert a monetary sum, payable or receivable in the future, into present value.
the combined discounts for lack of control and marketability. g the constant growth rate in cash flows or net income used in the ADF, Gordon model, or present value factor.
model for calculating DLOM for minority interests r the discount rate
In portfolio accounting, a straight-line accumulation of capital gains on discount
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
A convention used for quoting bids and offers for treasury bills in terms of annualized
An incentive offered to purchasers of a firm's product for payment within a specified time
A bond issued with a very low coupon or no coupon and selling at a price far below par
Referring to the selling price of a bond, a price below its par value. Related: premium.
Debt sold for less than its principal value. If a discount bond pays no interest, it is called a
Present value of $1 received at a stated future date.
The period during which a customer can deduct the discount from the net amount of the bill
The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is
non-interest-bearing money market instruments that are issued at a discount and
Facility provided by the Fed enabling member banks to borrow reserves against collateral
Selling something on a discounted basis is selling below what its value will be at maturity,
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discounted dividend model (DDM)
A formula to estimate the intrinsic value of a firm by figuring the
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
Calculating the present value of a future amount. The process is opposite to compounding.
Dividend discount model (DDM)
A model for valuing the common stock of a company, based on the
Documented discount notes
Commercial paper backed by normal bank lines plus a letter of credit from a
A currency trades at a forward discount when its forward price is lower than its spot price.
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
Include such things as freight, insurance, passenger services, and travel.
Defined benefit pension plans that are not guaranteed by life insurance products. Related:
Non-parallel shift in the yield curve
A shift in the yield curve in which yields do not change by the same
A tangible asset with unique physical properties, like a parcel of land, a mine, or a
Refer to goods and services produced and consumed domestically that are not close
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.
In a Treasury auction, bidding for a specific amount of securities at the price, whatever it
Nondiversifiability of human capital
The difficulty of diversifying one's human capital (the unique
Risk that cannot be eliminated by diversification.
Claims that cannot be easily bought and sold in the financial markets, such as those of
Without recourse, as in a non-recourse lease.
Not permitted, under the terms of indenture, to be redeemed.
Not permitted, under the terms of indenture, to be refundable.
nonmarket or firm-specific risk factors that can be eliminated by diversification. Also
Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.
A bond that will make only one payment of principal and interest. Also called a zerocoupon
Discounted cash flow (DCF)
A method of investment appraisal that discounts future cash flows to present value using a discount rate, which is the risk-adjusted cost of capital.
A general term referring to period costs, such as selling, administration and financial expenses.
A contra account that reduces purchases by the amount of the discounts taken for early payment.
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
discounted cash flow (DCF)
Refers to a capital investment analysis technique
The process of calculating the present value of a stream of future
The rate of interest used to calculate the present value of a stream
The process of calculating the present value of a stream of future
ad hoc discount
a price concession made under competitive pressure (real or imagined) that does not relate to quantity purchased
the process of reducing future cash flows to present value amounts
the rate of return used to discount future cash
the fixed overhead volume variance;
a restriction in a linear programming
non-value-added (NVA) activity
an activity that increases the time spent on a product or service but that does not increase its worth or value to the customer
risk-adjusted discount rate method
a formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk
The curve of discount rates vs. maturity dates for bonds.
Discounted cash flow
A technique that determines the present value of future cash
A reduction in the price of a product or service that is offered by the
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Present value of a $1 future payment.
Interest rate used to compute present values of future cash flows.
dividend discount model
Computation of today’s stock price which states that share value equals the present value of all expected future dividends.
The percentage amount at which bonds sell below their par value. Also the percentage amount at which a currency sells on the forward market below its current rate on the spot market.
A bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price.
Calculating the present value of a future payment.
The interest rate at which the Fed is prepared to loan reserves to commercial banks.
The Federal Reserve facility at which reserves are loaned to banks at the discount rate.
Nonqualified Retirement Plan
A pension plan that does not follow ERISA and
Nonqualified Stock Option
A stock option not given any favorable tax treatment
A debt or equity security for which there is no posted price or bidand-
Revenues or gains and expenses or losses that are not expected to recur
Any inventory item that does not match its original design
Nonsignificant part number
An identifying number assigned to a part that conveys
This is the maximum value of a policy that an insurance company will issue without the applicant taking a medical examination, although medical questions are invariably asked during the application process. When a non-medical issue is made through group insurance, in most cases, medical data is not requested at all.
A rate of return used to convert a monetary sum, payable or receivable in the future, into present value.
Discounted Cash Flow
Techniques for establishing the relative worth of a future investment by discounting (at a required rate of return) the expected net cash flows from the project.
The process of finding the present value of a series of future cash flows. discounting is the reverse of compounding.
Discounting of Accounts Receivable
Short-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable.
An amount deducted from an invoice by a supplier in exchange for quick payment (a typical example might be a 2% discount if paid in 10 days or the full amount of the invoice in 30 days).
NSF (non-sufficient funds)
This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds.
A type of insurance policy or annuity in which the owner does not receive dividends.
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