| Question |
Answer |
| ACP |
Average collection period |
| ADR |
American depository receipt |
| A/R |
Accounts receivable |
| b |
Beta Coefficient, a measure if an asset's riskiness |
| b L |
Levered beta |
| b U |
unlevered beta |
| BEP |
Basic earning power |
| BVPS |
Book value per share |
| CAPM |
Capital Asset Pricing Model |
| CCC |
Cash conversion cycle |
| CF |
Cash flow; CF t is the cash flow in Period t |
| CFPS |
Cash flow per share |
| CV |
Coefficient of variation |
| D p |
Dividend of preferred stock |
| D t |
Dividend in Period t |
| DCF |
Discounted cash flow |
| DPS |
Dividends per share |
| DRIP |
Dividend reinvestment plan |
| DRP |
Default risk premium |
| DSO |
Days sales outstanding |
| EAR |
Effective annual rate, EFF% |
| EBIT |
Earnings before interest and taxes; net operating income |
| EBITDA |
Earnings before interest,taxes, depreciation, and amortization |
| EPS |
Earnings per share |
| EVA |
Economic value added |
| F |
(1) fixed operating cost |
| FCF |
Free cash flow |
| FV N |
Future value for Year N |
| FVA N |
Future value of an annuity for N years |
| g |
Growth rate in earnings, dividends, and stock prices |
| I |
Interest rate; also referred to as r |
| I/YR |
Interest rate key on some calculators |
| INT |
Interest payment in dollars |
| IP |
Inflation premium |
| IPO |
Initial public offering |
| IRR |
Internal rate of return |
| LP |
Liquidity premium |
| M |
Maturity value of a bond |
| M/B |
Market-to-book ratio |
| MIRR |
Modified internal rate of return |
| MRP |
Maturity risk premium |
| MVA |
Market value added |
| N |
Calculator key denoting number of periods |
| NOPAT |
Net operating profit after taxes |
| NOWC |
Net operating working capital |
| NPV |
Net present value |
| P |
(1) Price of a share of stock in Period t; P 0 = price of the stock today |
| Pf |
Price of good in foreign country |
| Ph |
Price of good in home country |
| P/E |
Price / earnings ratio |
| PMT |
Payment of an annuity |
| PPP |
Purchasing power parity |
| PV |
Present value |
| PVA N |
Present value of an annuity for N years |
| Q |
Quantity produced or sold |
| Q BE |
Breakeven quantity |
| r |
(1) A percentage discount rate, or cost of capital; also referred to as I |
| r bar |
historic, or realized, rate of return |
| r hat |
an expected rate of return |
| r* |
Real risk-free rate of return |
| r d |
Before-tax cost of debt |
| r e |
Cost of new common stock (outside equity) |
Science Vocab 147928
