|Weighted average life|
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Definition of Weighted average life
Weighted average life
Arithmetic mean return.
An arithmetic mean of selected stocks intended to represent the behavior of the market or some
The average project earnings after taxes and depreciation divided by the average
An estimation of price that uses the average or representative price of a
The weighted-average age of all of the firm's outstanding invoices.
The average useful life of a company's collective amortizable asset base.
average number of days necessary to receive cash for the sale of
The ratio of accounts receivables to sales, or the total
The inventory cost-flow assumption that assigns the average
A firm's required payout to the bondholders and to the stockholders expressed as a
The beginning inventory for a period, plus the amount at the end of
Also referred to as the weighted-average life (WAL). The average number of years that each
The average time to maturity of securities held by a mutual fund. Changes in interest rates
Ratio of consumption to disposable income. See also marginal propensity to consume.
Ratio of saving to disposable income. See also marginal propensity to save.
Average rate of return (ARR)
The ratio of the average cash inflow to the amount invested.
Average tax rate
Taxes as a fraction of income; total taxes divided by total taxable income.
average tax rate
Total taxes owed divided by total income.
Canadian Life and Health Insurance Association (CLHIA)
An association of most of the life and health insurance companies in Canada that conducts research and compiles information about the life and health insurance industry in Canada.
Deferred nominal life annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal
Dollar-weighted rate of return
Also called the internal rate of return, the interest rate that will make the
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Dow Jones Industrial Average
Index of the investment performance of a portfolio of 30 “blue-chip” stocks.
The period over which a company expects to be able to use an asset.
Group Life Insurance
This is a very common form of life insurance which is found in employee benefit plans and bank mortgage insurance. In employee benefit plans the form of this insurance is usually one year renewable term insurance. The cost of this coverage is based on the average age of everyone in the group. Therefore a group of young people would have inexpensive rates and an older group would have more expensive rates.
Joint Policy Life
One insurance policy that covers two lives, and generally provides for payment at the time of the first insured's death. It could also be structured to pay on second death basis for estate planning purposes.
Level Premium Life Insurance
This is a type of insurance for which the cost is distributed evenly over the premium payment period. The premium remains the same from year to year and is more than actual cost of protection in the earlier years of the policy and less than the actual cost of protection in the later years. The excess paid in the early years builds up a reserve to cover the higher cost in the later years.
life cycle costing
the accumulation of costs for activities that
The average number of years of life remaining for a group of people of a given age and gender according to a particular mortality table.
Life Income Fund
Commonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income payout as opposed to Registered Retirement Savings Plan (RRSP) holders choice of payout through Registered Retirement Income Funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80.
Insurance that provides protection against an economic loss caused by death of the person insured.
Life Insurance (Credit Insurance)
Group Term life insurance that pays or reduces the balance due on a loan if the borrower dies before the loan is repaid.
The person who's life is protected by an individual policy.
An approach to costing that estimates and accumulates the costs of a product/service over
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Mortgage Life insurance (Credit Insurance)
Decreasing term life insurance that provides a death benefit amount corresponding to the decreasing amount owed on a mortgage.
Used in charts and technical analysis, the average of security or commodity prices
A price average that is adjusted by adding other
Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
A financial chart that plots leading and lagging
product life cycle
a model depicting the stages through
The time period during which inventory can be retained in stock and beyond
Shelf life control
Deliberate usage of the oldest items first, in order to avoid exceeding
Simple moving average
The mean, calculated at any time over a past period of fixed length.
Split Dollar Life Insurance
The split dollar concept is usually associated with cash value life insurance where there is a death benefit and an accumulation of cash value. The basic premise is the sharing of the costs and benefits of a life insurance policy by two or more parties. Usually one party owns and pays for the insurance protection and the other owns and pays for the cash accumulation. There is no single way to structure a split dollar arrangement. The possible structures are limited only by the imagination of the parties involved.
Temporary Life Insurance
Temporary insurance coverage is available at time of application for a life insurance policy if certain conditions are met. Normally, temporary coverage relates to free coverage while the insurance company which is underwriting the risk, goes through the process of deciding whether or not they will grant a contract of coverage. The qualifications for temporary coverage vary from insurance company to insurance company but generally applicants will qualify if they are between the ages of 18 and 65, have no knowledge or suspicions of ill health, have not been absent from work for more than 7 days within the prior 6 months because of sickness or injury and total coverage applied for from all sources does not exceed $500,000. Normally a cheque covering a minimum of one months premium is required to complete the conditions for this kind of coverage. The insurance company applies this deposit towards the cost of a policy at its issue date, which may be several weeks in the future.
A product that provides life coverage for a specified duration typically not beyond the age of 75.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
Term Life Insurance
A plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term.
Time-weighted rate of return
Related: Geometric mean return.
A whole life insurance product whose investment component pays a competitive interest rate
An unbundled life product with a separate investment component. It typically does not participate in companies profits.
The estimated life span of a fixed asset, during which it can be expected to
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
An inventory valuation method that calculates a weighted average cost per unit for all the goods available for sale.
A method of accounting for inventory.
Weighted average cost of capital
Expected return on a portfolio of all the firm's securities. Used as a hurdle
Weighted average cost of capital
See cost of capital.
weighted-average cost of capital
weighted means that the proportions of
weighted average cost of capital
a composite of the cost of the various sources of funds that comprise a firm’s capital structure; the minimum rate of return that must be earned on new investments so as not to dilute shareholder value
Weighted Average Cost of Capital (WACC)
The weighted average of the costs of the capital components
weighted-average cost of capital (WACC)
Expected rate of return on a portfolio of all the firm’s securities, adjusted for tax savings due to interest payments.
Weighted Average Cost of Capital (WACC)
A weighted average of the component costs of debt, preferred shares, and common equity. Also called the composite cost of capital.
Weighted average coupon
The weighted average of the gross interest rate of the mortgages underlying the
Weighted average maturity
The WAM of a MBS is the weighted average of the remaining terms to maturity
weighted average method (of process costing)
the method of cost assignment that computes an average cost per
Weighted average portfolio yield
The weighted average of the yield of all the bonds in a portfolio.
Weighted average remaining maturity
The average remaining term of the mortgages underlying a MBS.
Component that provides life coverage during the insured's life.
Whole life insurance
A contract with both insurance and investment components: (1) It pays off a stated
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