|Sale and lease-back|
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Definition of Sale and lease-back
Sale and lease-back
sale of an existing asset to a financial institution that then leases it back to the user.
A bond covenant that restricts in some way a firm's ability to enter into
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
Bond or note secured by assets of company.
A security that is collateralized by loans, leases, receivables, or installment contracts
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
The fee paid on the extension date if the buyer wishes to continue the option.
The subsequent subtraction from inventory records of those parts used
Brokerage house clerical operations that support, but do not include, the trading of stocks and
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
An intercompany loan channeled through a bank.
A loan in which two companies in separate countries borrow each other's currency for a
1) When bond yields and prices fall, the market is said to back-up.
A procedure for making the effective date of a policy earlier than the application date. backdating is often used to make the age of the consumer at policy issue lower than it actually was in order to get a lower premium.
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
A market condition in which futures prices are lower in the distant delivery months than in
A method of securities distribution/ underwriting in which the securities firm agrees to sell
Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between
Another term for a repo.
A lease obligation that has to be capitalized on the balance sheet.
A lease in which the lessee obtains some ownership rights over the asset
One where substantially all of the benefits and risks of ownership are transferred to the lessee. It must be reflected on the company's balance sheet as an asset and corresponding liability.
a system using transfer prices; see transfer
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
A type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made.
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Cost of lease financing
A lease's internal rate of return.
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
lease in which the lessor purchases new equipment from the manufacturer and leases it to the
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
With respect to a project financing, an arrangement under which the sponsors of a project
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
A cross-border lease in which the disparate rules of the lessor's and lessee's countries let
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
The retrospective process of measuring performance, comparing it with plan and taking corrective action.
Long-term, non-cancelable lease.
lease in which the service provided by the lessor to the lessee is limited to financing equipment. All other responsibilities related to the possession of equipment, such as maintenance, insurance, and taxes, are borne by the lessee. A financial lease is usually noncancellable and is fully paid out amortized over its term.
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
A method for hedging price risk which involves an agreement between a lender and an investor
See: financial lease.
Also called rental lease. lease in which the lessor promises to maintain and insure the
Up-front gain recognized from the securitization and sale of a pool
The total sales recorded prior to sales discounts and returns.
The sale of an asset in exchange for a specified series of payments (the installments).
A long-term rental agreement, and a form of secured long-term debt.
Long-term rental agreement.
Lease (Credit Insurance)
Contract granting use of real estate, equipment or other fixed assets for a specified period of time in exchange for payment. The owner or a leased property is the lessor and the user the lessee.
The consideration paid by the lessee to the lessor in exchange for the use of the leased equipment/property. Payments are usually made at fixed intervals.
The payment per period stated in a lease contract.
The payment per period stated in a lease contract.
This is any upgrade to leased property by a lessee that will be
The cost of improvements made to property that the company leases.
A lease arrangement under which the lessor borrows a large proportion of the funds needed
Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to
Official SEC record of a settlement or a hearing scheduled before a civil
An option that allows the buyer to choose as the option strike price any price of the
The offsetting of a current year loss against the reported taxable
Securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Situation in which the terms of an offering are determined by negotiation between the issuer
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Total revenue, less the cost of sales returns, allowances, and discounts.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet.
A transaction in which the seller's intention is to create or increase a short position in a given
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
The rental of an asset from a lessor, but not under terms that would
One where the risks and benefits, as well as ownership, stays with the lessor.
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
A method of investment appraisal that calculates the number of years taken for the cash flows from an investment to cover the initial capital outlay.
The length of time required for the net revenues of an investment for the net revenues of an investment to return the cost of the investment.
A capital budgeting analysis method that calculates the amount of
The number of years necessary for the net cash flows of an
the time it takes an investor to recoup an
Time until cash flows recover the initial investment of the project.
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
Related: retention rate.
Fraction of earnings retained by the firm.
point of sale (POS)
The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment.
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Purchase and sale
A method of securities distribution in which the securities firm purchases the securities
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:
return on sales
This ratio equals net income divided by sales revenue.
Safe harbor lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A reduction in a price that is allowed by the seller, due to a problem
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A reduction in the price of a product or service that is offered by the
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A key input to a firm's financial planning process. External sales forecasts are based on
A journal used to record the transactions that result in a credit to sales.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
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