Fundamentals of Corporate Finance, Second Edition
by Robert Parrino, David S. Kidwell, Thomas W. Bates
GLOSSARY
A
accounting operating profit (EBIT) break-even point
the number of units that must be sold for accounting operating profit to equal $0
accounting rate of return (ARR)
a rate of return on a capital project based on average net income divided by average book value over the project's life; also called the book value rate of return
adjusted book value
the sum of the fair market values of the individual assets in a business
agency conflicts
conflicts of interest between a principal and an agent
agency costs
the costs arising from conflicts of interest between a principal and an agent; for example, between a firm's owners and its management
amortization schedule
a table that shows the loan balance at the beginning and end of each period, the payment made during that period, and how much of that payment represents interest and how much represents repayment of principal
amortizing loan
a loan for which each loan payment contains repayment of some principal and a payment of interest that is based on the remaining principal to be repaid
angels (angel investors)
wealthy individuals who invest their own money in new ventures
annual percentage rate (APR)
the simple interest rate charged per period multiplied by the number of periods per year
annuity
a series of equally spaced and level cash flows extending over a finite number of periods
annuity due
an annuity in which payments are made at the beginning of each period
arbitrage
buying and selling assets in a way that takes advantage ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access