Definitions Part II Word Scramble
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Question | Answer |
Yield to Maturity | The discount rate that sets the present value of the promised bond payments equal to the current market price of the bond. |
NPV | Net Present Value - The difference between the present value of a project or investment's benefits and the present value of its costs. |
EAR | Effective Annual Rate - total amount of interest that will be earned at the end of one year. |
APR | Annual percentage rate - the amount of interest earned in one year without the effect of compounding. |
Terminal Value | The value of a project's remaining free cash flows beyond the forecast horizon. This amt represents mkt value of the free cash flow from the project at all future dates. |
Enterprise Value | Total market value of firm's equity and debt. (Not to be confused with market cap.) |
Created by:
Elisahbeth
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