Term
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Definition
| P/S on which missed dividends (arrears) must be paid prior to payment of a current dividend |
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Term
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Definition
| reacquired stock of a firm preferred stock |
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Term
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Definition
| a financing arrangement involving real or personal property that gives the lessee all the rights and benefits of ownership of the underlying property (asset). |
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Term
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Definition
| dividend not based on R/E, 9 implies a reduction in both R/E and PIC |
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Term
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Definition
| represents the increase in interest recognized over the term of a bond because the yield rate is greater than the coupon rate; also, the decrease in present value of a B/P relative to par@ issue due to the rate relationship |
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Term
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Definition
| unsecured (no collateral) B/P |
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Term
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Definition
| P/S paid a dividend at a rate greater than that stated on the certificate |
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Term
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Definition
| a convertible security which, if converted to C/S, would cause a drop in EPS |
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Term
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Definition
| right to maintain one’s ownership percentage in a firm before public sale of new C/S |
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Term
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Definition
| legal capital; amount recorded in a given security account @ sale (such as C/S) |
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Term
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Definition
| any lease not meeting the definition of a capital lease; no presumption of sale of the underlying asset to the lessee. |
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Term
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Definition
| EPS, including in the weighted average number of shares all convertible securities which, if converted to C/S, would cause a drop in EPS. |
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Term
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Definition
| tendency of managers to overstate their performance (concentrate on indicators rather than economic measures of performance; post-hiring issue). Also, tendency of buyers to overuse items such as insurance |
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Term
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Definition
| : tendency of managers to overstate their credentials (misstatement of achievement; pre-hiring issue). Also, tendency of more reckless individuals to buy items such as insurance |
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Term
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Definition
| a dividend consisting of additional shares of the underlying stock. Can be either large or small. |
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Term
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Definition
| A change in the number of outstanding shares by reissuing shares with new par values |
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Term
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Definition
| a payment to owners (return) based on stock ownership |
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Term
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Definition
| Stock sold after the date of record are said to sold in this way (owner does not receive the dividend) |
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Term
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Definition
| Stock before the date of record are said to sold in this way (owner receives the dividend and must pay the seller the dividend amount plus the sales price) |
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Term
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Definition
| Creditors are limited in that the assets they can claim to settle obligations must be those of the entity – not those of owners or managers. The assets of the firm’s owners (or managers) are not those of the firm itself, and cannot be used to pay firm obligations. |
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Term
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Definition
| change in return due to use of debt financing (as opposed to stock financing) |
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Term
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Definition
| retirement of debt such as B/P |
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Term
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Definition
| missed (not yet paid) dividend |
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Term
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Definition
| adjunct account; represents the decrease in interest recognized over the term of a bond because the yield rate is less than the coupon rate; also, the increase in present value of a B/P over par@ issue due to the rate relationship. |
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Term
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Definition
| =(principal - pmt) - lease liability after int exp |
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Term
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Definition
| = face value + ( premium b/p - premium b/p after interest) |
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Term
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Definition
| par value x % p/s outstanding |
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Term
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Definition
=(NI - shrs sold @ par)
________________________
shares at C/S |
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Term
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Definition
| = face amount x amount @ retirement |
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Term
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Definition
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Term
| leverage effect, need cash, cheaper than alternative, interest is tax deductible |
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Definition
| reasons why a firm might issue bonds |
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Term
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Definition
| = original cost- accum depreciation |
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Term
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Definition
| = listed price - discounts |
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Term
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Definition
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Term
| Implied gain/ loss ( similar asset exchange) |
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Definition
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Term
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Definition
| = BV old + cash paid for new |
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Term
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Definition
| = NI + iNT ( 1 - tax rate) / (avg TA) |
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Term
| warranty expense estimate |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| = 2 / life ( cost- acc dep) |
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Term
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Definition
| = 1 / life ( cost - salvage value) |
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Term
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Definition
| = operating cash - ( capital acquisition + dividends) |
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Term
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Definition
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Term
| Quality earnings ratio > 1 |
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Definition
| operating cash exceeds NI , operations are generating cash in general case |
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