Per Share (EPS)
divided by the number of share of common Stock outstanding.
added to shareholders by management during a given year.
(Equivalent) Annual Rate (EAR/EFF%)
rate of interest actually being earned, as opposed to the quoted rate.
Also called the "equivalent annual rate."
Markets Hypothesis (EMH)
that securities are typically in equilibrium-that they are fairly priced
in the sense that the price reflects all publicly available information
on each security.
under which the expected return on a security is just equal to its required
return ^k =k. Also, ^Po = Po, and the price is stable.
Annual Annuity (EAA) Method
which calculates the annual payments a project would provide if it were
an annuity. When comparing projects of unequal lives, the one with the
higher equivalent annual annuity should be chosen.
sold in a country other than the one in whose currency the bond is denominated.
dollar deposited in a bank outside the United States.
on which the right to the current dividend no longer accompanies a stock;
it is usually four working day prior to the holder-of-record date.
of units of a given currency that can be purchased for one unit of another
that relates to what the basic cash flows will be worth in the parent
company's home currency.
to buy stock at a stated price within a specified time period that is
granted to an executive as part of his or her compensation package
that is intended to increase sales.
which states that the shape of the yield curve depends on investors'
expectations about future interest rates.
Rate of Return, ^k
of return expected to be realized from an investment; the weighted average
of the probability distribution of possible results.
Rate of Return,^ ks
of return on a common stock that a stockholder expects to receive.
Return on a Portfolio, ^kp
average of the expected returns on the assets held in the portfolio.
of the expected dividend yield and the expected capital gains yield.
of a project on cash flows in other parts of the firm.
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