BUS 420 - Exam 2 Flash Cards

 
log in to manage your card piles
front back revisions lasted changed by history
Absolute Priority Rule The list that establishes the order of claims in a liquidation. 0 johnwp06 Wed, 28 Jul 2010 16:01:34 GMT view revision history
Bankruptcy a legal process for liquidating or reorganizing a business. 0 johnwp06 Wed, 28 Jul 2010 16:01:34 GMT view revision history
Financial Risk Equity Risk that comes from the capital structure of a firm. 0 johnwp06 Wed, 28 Jul 2010 16:01:34 GMT view revision history
Business Risk Equity risk that comes from the nature of a firm's operating activities. 0 johnwp06 Wed, 28 Jul 2010 16:01:34 GMT view revision history
Erosion` a reduction in the sales of a current product whenever a new product is introduced. 0 johnwp06 Wed, 28 Jul 2010 15:50:03 GMT view revision history
Opportunity Cost The most valuable alternative that is given up if a particular investment is taken. 0 johnwp06 Wed, 28 Jul 2010 15:50:03 GMT view revision history
Sunk Cost A cost that has already been incurred and cannot be recouped. 0 johnwp06 Wed, 28 Jul 2010 15:50:03 GMT view revision history
Discounted Cash Flow The process of valuing an investment by discounting its future cash flows. 0 johnwp06 Wed, 28 Jul 2010 15:50:03 GMT view revision history
Net Present Value Defined as the difference between an investment's market value and cost. 0 johnwp06 Wed, 28 Jul 2010 15:41:33 GMT view revision history
Broker An agent who arranges security transactions among investors. 0 johnwp06 Wed, 28 Jul 2010 15:41:33 GMT view revision history
Preferred Stock Stock that pays a fixed dividend and receives priority in payment of dividends. 0 johnwp06 Wed, 28 Jul 2010 15:41:33 GMT view revision history
Capital Gains Yield The rate at which the value of an investment grows. 0 johnwp06 Wed, 28 Jul 2010 15:41:33 GMT view revision history
Dividends Payments to shareholders by a corporation that represents a return on capital. 0 johnwp06 Wed, 28 Jul 2010 15:36:49 GMT view revision history
Dividend Yield Next year's dividend divided by today's stock price 0 johnwp06 Wed, 28 Jul 2010 15:36:49 GMT view revision history
Zero Growth A stock that pays a constant dollar dividend over an extended period of time. 0 johnwp06 Wed, 28 Jul 2010 15:36:49 GMT view revision history
Fisher Effect Examines relationship between: inflation, real, and nominal rates. 0 johnwp06 Wed, 28 Jul 2010 15:36:49 GMT view revision history
Nominal Rates The rate of return you can earn on an investment before adjusting for inflation. 0 johnwp06 Wed, 28 Jul 2010 15:22:00 GMT view revision history
Real Interest Rate Interest rate that has been adjusted for inflation. 0 johnwp06 Wed, 28 Jul 2010 15:22:00 GMT view revision history
Sinking Fund An account managed by a bond trustee for the purpose of redeeming bonds early. 0 johnwp06 Wed, 28 Jul 2010 15:22:00 GMT view revision history
Note an unsecured debt that matures in less than 10 yrs. 0 johnwp06 Wed, 28 Jul 2010 15:22:00 GMT view revision history
Debenture An unsecured debt that generally matures in ten or more years 0 johnwp06 Wed, 28 Jul 2010 15:17:17 GMT view revision history
Bond Indenture written agreement between the corporation and its creditors 0 johnwp06 Wed, 28 Jul 2010 15:17:17 GMT view revision history
Discount Bond Bond that sells for less than face value 0 johnwp06 Wed, 28 Jul 2010 15:17:17 GMT view revision history
Premium Bond bond where par value exceeds face value 0 johnwp06 Wed, 28 Jul 2010 15:17:17 GMT view revision history
Yield to Maturity the rate required in the market on a bond 0 johnwp06 Wed, 28 Jul 2010 15:14:28 GMT view revision history
maturity the date on which the principal amount of a bond is paid 0 johnwp06 Wed, 28 Jul 2010 15:14:28 GMT view revision history
Face Value The principal amount of a bond that is repaid at the end of the term. 0 johnwp06 Wed, 28 Jul 2010 15:14:28 GMT view revision history
Coupon The stated interest payment made on a bond 1 johnwp06 Wed, 28 Jul 2010 16:04:21 GMT view revision history

Study Now
View Users (1)