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Annuity in advance

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Decision tree analysis
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Scenario analysis
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Sensitivity analysis
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Underwriter

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nnuity
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Arbitrage
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Arbitrage pricing theory

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Asymmetric information
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Underlying asse
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Book
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Sunk costs
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Perpetuity
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Beta coefficient
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Broker
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Warrant
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Mutual1y exclusivc projects
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Interna1 rate of retum IRR
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Intrinsic value
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Within-the-firm risk,
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Corporate risk

Agents

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Time value of money
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Secondary market
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Leveraged buyout LBO
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Treasury stocks
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( ll premium

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Residual dividend approach


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Efficient market hypothesis :
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Marginal cost of capital
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perating cash flows



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Diversification


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Divestiture
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Stock dividend
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Dealer
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Discounting
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Discounted payback period

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Variance
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Yield to maturity
Stock split
Sole proprietorship

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pportunity cost

Investment banker

Profitability index (PI)

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Insiders

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Exercising the option

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Covariance

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Limited partnership

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Future value
Terminal value

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Consol

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Correlation

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Correlation coefficient

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Inventory turniver ratio


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urrent ratio

Retention ratio

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Retum n assets - ROA


Retum n equity - ROE
Quick ratio
Acid-test
Profit margin n sales

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Cumulative stocks

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Coupon



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Operation leverage
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Financial leverage
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Salvage value

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Security market line
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Safety margin
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Expected retum
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Dividend growth mode
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Capital Asset Pricing Model


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Agency costs
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Independent project
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Debenture
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Non-normal project;
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Unconventional project
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Non-systematic risk
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73 Nminl interest rate

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Coupon rate
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Normal distribution
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Capital rationing
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Bond


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Discount bond

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Callable bond

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Comn with limited


liability

81


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Cmmon stock

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transaction costs

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Option

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Cll price of bond

85

Deferred taxes

86

Primary market

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Payback period

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()

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90

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Takeover

Partnership

Portfolio

91

Marginal cost of capital


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Business risk

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Preemptive right

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Risk premium

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Compound interest

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apital budgeting

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preferred stock

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Capital gains

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Derivative

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Best-effort underwriting

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Firm commitment
underwriting

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Real interest rate

101

Capital markets

102

Market capitalization

103

Market portfoIio

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SWAP

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Undenvriting syndicate


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Systematic risk

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""

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Discount rate
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Risk-adjusted discount rate
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Hurdle rate
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Standard deviation
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Capital structure

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Dupont system
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Weighted average cost of
capital

Present value

Agency theory

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Signaling theory


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Break-even point

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Break-even point


121 ( x
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Annuity factor

122

Financial intermediaries

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Financial risk

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Sinking fund

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Forward contract

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Utility function

127

Futures contract

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Characteristic line

129

Hedging

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Holding mn

131

Cost of capital

132

Cost of equity


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Net present value -NPV
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Effective annual interest
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rate
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Efficient frontier

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Efficient portfolio

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Effective rate

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