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Details Title: Principles of Finance Description: financial terms Total Flash Cards: 26 Created: 02/03/2004 14:02:47	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Capital Definition permanently invested money Term Undercapitalized Definition not enough money Term Illiquid Definition not enough cash to pay bills Term Profit Definition revenues over cost Term Profit Margin Definition cents out of a dollar kept Term Compound Interest Definition time value Term Business Finance Definition how enterprises are managed Term Investments Definition assests held to conserve capital Term Financial Managers Dilemma Definition profitability over liquidity Term Suitability Definition never borrow short and lend long Term Opportunity Cost Definition return on best available alternative use Term Capitalize Definition convert an amount into a future or present amount Term Compounding Definition present to future Term Discounting Definition future to present Term Simple Interest Definition interest=principleXrateXtime Term Annuity Definition payment of a fixed amount of money for years Term Cyclical Definition 2 to 5 years (cycle) Term Secular Definition several cycles Term Term Structure Definition interest rates plotted against time to maturity Term Quality Structure Definition links interest rate to risk Term Productivity Definition make money while using the loan, repay principle, pay a fee to lender, and have profit left over Term Time Preference Definition tendency to want money now rather than later Term Nominal Rate Definition ratio of dollars repaid to dollars borrowed Term Deflated Rate Definition ratio of buying power borrowed and repaid Term Money Illusion Definition failure to recognize nominal and deflated rates Term Risk Definition likelihood actual return will differ from expected value