Details Title: Final for Finance Description: ^^^^^^^^^^^^^^^^^ Total Flash Cards: 8 Created: 05/05/2008 21:16:45		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Finance Flashcards
Cards in this set: Term Pro Forma Statement Definition Financial Statements projecting future years’ operations Term Capital Asset Pricing Model (CAPM) Definition -Equation of the security market line showing the relationship between expected return and beta Term Net Present Value Definition The difference between an investment’s market value and its cost Term WACC Definition The weighted average of the cost of equity and the after tax cost of debt Term Best Efforts Underwriting Definition -Type of underwriting in which the underwriter sells as much of the issue as possible, but can return any unsold shares to the issuer without financial responsibility Term Firm Commitment Underwriting Definition Underwriting Process -Type of underwriting in which the underwriter buys the entire issue, assuming full financial responsibility for any unsold shares Term Green Shoe Provision Definition Contract provision giving the underwriter the option to purchase additional shares from the issuer at the offering Term Dutch Auction Underwriting Definition Type of underwriting in which the offer price is set based on competitive bidding by investors