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Definition
| process of planning and managing a firm's long term investments |
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| mixture of debt and equity maintained by a firm |
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| firm's short term assets and liabilities |
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| single individual owned business |
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Definition
| business owned by two or more individuals or entities |
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Definition
| a business created as a distinct entity composed of one or more individuals or entities |
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Definition
| the possibility of conflict of interest between the stockholders and management of a firm |
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Definition
| someone other than a stockholder or creditor who potentially has a claim on the cash flows of a firm |
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| the process of accumulating interest on an investment over time to earn more interest; verb for going into the future |
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Definition
| interest earned on the reinvestment of previous interest payments |
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Definition
| interest earned on both the initial principal and the interest reinvested from prior years |
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| interest earned only on the principal amount invested |
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| earlier money on the timeline |
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| later money on the time line |
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| calculating the present value of future money; verb for bringing funds into the present |
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Definition
| rate to calculate the present value of future cash flows |
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Term
| discounted cash flow (DCF) evaluation |
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Definition
| calculating the present value of a future cash flow to determine its value today |
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