公司理财词汇表.docx

1、COPORATE FINANCEGlossaryAAR Average accounting return.ACRS Accelerated cost recovery system.APT Arbitrage pricing theory.Absolute priority rule (APR) Establishes priority of claims under liquidation.Accelerated cost recovery system (ACRS) A system used to depreciate assets for tax purposes. The curr

2、ent system, enacted by the 1986 Tax Reform Act, is very similar to the ACRS established in 1981. The current system specifies the depreciable lives (recovery periods) and rates for each of several classes of property.Accounting insolvency Total liabilities exceed total assets. A firm with negative n

3、et worth is insolvent on the books.Accounting liquidity The ease and quickness with which assets can be converted to cash.Accounts payable Money the firm owes to suppliers.Accounts receivable Money owed to the firm by customers.Accounts receivable financing A secured short-term loan that involves ei

4、ther the assigning of receivables or the factoring of receivables. Under assignment, the lender has a lien on the receivables and recourse to the borrower. Factoring involves the sale of accounts receivable. Then the purchaser, called the factor, must collect on the receivables.Accounts receivable t

5、urnover Credit sales divided by average accounts receivable.Additions to net working capital Component of cash flow of firm, along with operating cash flow and capital spending.Advance commitment A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset

6、risk by purchasing a futures contract to fix the sales price.Agency costs Costs of conflicts of interest among stockholders, bondholders, and managers. Agency costs are the costs of resolving these conflicts. They include the costs of providing managers with an incentive to maximize shareholder weal

7、th and then monitoring their behavior, and the cost of protecting bondholders from shareholders. Agency costs are borne by stockholders.Agency theory The theory of the relationship between principals and agents. It involves the nature of the costs of resolving conflicts of interest between principal

8、s and agents.Aggregation Process in corporate financial planning whereby the smaller investment proposals of each of the firm5s operational units are added up and in effect treated as a big picture.Aging schedule A compilation of accounts receivable by the age of account.American Depository Receipt

9、(ADR) A security issued in the United States to represent shares of a foreign stock, enabling that stock to be traded in the United States.American option An option contract that may be exercised anytime up to the expiration date. A European option may be exercised only on the expiration date.Amorti

10、zation Repayment of a loan in installments.Angels Individuals providing venture capital.Annualized holding-period return The annual rate of return that when compounded T times, would have given the sameperiod holding return as actually occurred from period 1 to period T.Annuity A level stream of equ

11、al dollar payments that lasts for a fixed time. An example of an annuity is the coupon part of a bond with level annual payments.Annuity factor The term used to calculate the present value of the stream of level payments for a fixed period.Annuity in advance An annuity with an immediate initial paym

12、ent.Annuity in arrears An annuity with a first payment one full period hence, rather than immediately. That is, the first payment occurs on date 1 rather than on date 0.Appraisal rights Rights of shareholders of an acquired firm that allow them to demand that their shares be purchased at a fair valu

13、e by the acquiring firm.Arbitrage Buying an asset in one market at a lower price and simultaneously selling an identical asset in another market at a higher price. This is done with no cost or risk. Arbitrage pricing theory (APT) An equilibrium asset pricing theory that is derived from a factor mode

14、l by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.Arithmetic average The sum of the values observed divided by the total number of observations一sometimes referred to as the mean.Assets Anything that the firm owns

15、.Assets requirements A common element of a financial plan that describes projected capital spending and the proposed uses of net working capital.Auction market A market where all traders in a certain good meet at one place to buy or sell an asset. The NYSE is an example.Autocorrelation The correlati

16、on of a variable with itself over successive time intervals. Availability float Refers to the time required to clear a check through the banking system. Average accounting return (AAR) The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.Average collection period Average amount of time required to collect an account receivable. Also referred to as days s