List of Abbreviations
- Page ID
- 12780
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Value | Description | Chapter |
---|---|---|
A | constant loan payment | 16 |
AE | annuity equivalent | 8, 10, 12, 13 |
AIS | accrual income statement | 4, 5, 6, 12, 13 |
AL | accrued liabilities | 12, 13 |
AP | accounts payable | 5, 12, 13 |
APR | annual percentage rate | 16 |
AR | accounts receivable | 12, 13 |
ATCF | after-tax cash flow | 3, 12, 13 |
AVG | attachment value goods | 21 |
CA | current assets | 5 |
CE | cash expenses | 5, 12 |
CFS | coordinated financial statements | 4, 5, 6 |
CL | current liabilities | 5 |
COGS | cost of goods sold | 4, 5, 6, 12 |
CPI | consumer price index | 14 |
CR | cash receipts | 12 |
d | geometric decay | 11 |
D | debt | 5, 6, 7, 8, 15 |
Dep | depreciation | 3, 12 |
E | equity | 5, 6, 7, 8, 15 |
EBIT | earnings before interest and taxes | 4, 5, 6, 12 |
EBT | earnings before taxes | 4, 5, 6, 12 |
EV | expected value-variance | 15 |
FTC | Federal Trade Commission | 5 |
FV | future values | 19 |
g | nominal growth rate | 17 |
g* | real growth rate | 17 |
GAAP | generally accepted accounting practices | 4 |
i | average interest rate | 8, 9, 10, 14, 15, 16 |
i (superscript) | investment identifier | 9, 10, 15 |
INV | inventories | 5, 6 |
IRR | internal rate of return | 9, 10, Appendix |
IRRA | internal rate of return on Assets | 12, 13 |
IRRE | internal rate of return on Equity | 12, 13 |
IRS | Internal Revenue Service | 2, 3, 12 |
L | loan amount | 16 |
LLC | Limited Liability Company | 2 |
m | profit margin | 5, 6, 10, 15, 16, 19, Appendix |
MACRS | modified accelerated cost recovery system | 12 |
MIRR | modified IRR | 9, 10 |
mn | term | 16 |
MNPV | modified NPV | 9, 10 |
NIAT | net income after taxes | 4, 5, 6, 12 |
NPC | net present cost | 18 |
NPV | net present value | 7–21 |
NWC | net working capital | 5 |
OE | overhead expense | 4, 5, 6 |
p | percent of loan to be paid as a refinance cost | 16 |
PV | present value | 1, 2, 7–20, Appendix |
QTM | quantity theory of money | 14 |
r | nominal discount rate | 7–20, Appendix |
rf | APR | 14, 16 |
rm | market rate of interest | 7 |
r* | real discount rate | 17 |
R |
constant value of net cash flow | 8, 10, 11, 14, Appendix |
constant value of cash deposits | 19 | |
Rti | cash flow earned by investment i in the tth period | 9 |
R (bold) | vector of cash flow values Rti earned by V0i | 9 |
ROA | return on assets | 5–8, 12, 15, Appendix |
ROE | return on equity | 5–8, 12, 15, Appendix |
ROI | return on investment | 7, 12 |
S | units sold | 6 |
liquidation value | 7, 8 | |
sum of compounded periodic cash flows | 9, 10,17 | |
standard deviation from a sample distribution | 15 | |
SCF | statement of cash flow | 4, 12 |
SEC | Securities and Exchange Commission | 5 |
SEG | socio-emotional goods | 21 |
T | tax | 3, 5, 11, 12 |
t (subscript) | time period | 7, 9–18 |
TI | total interest | 16 |
V0 | initial value | 7–15, 17–20, Appendix |
W | firm’s wealth value | 15 |
w | outcome variable | 15 |
y | outcome variable | 15 |
Excel Functions | ||
FV | future value | 19, Appendix |
IPMT | interest payment | 16 |
IRR | internal rate of return | Appendix |
NPER | number of periods | Appendix |
NPV | net present value | Appendix |
PMT | period payment | Appendix |
PV | present value | Appendix |
RATE | rate | Appendix |
Functions | ||
Cov() | covariance | 15 |
E() | expected value operator | 15 |
Pr() | probability | 15 |
S(r, Rti) | Sum of periodic cash flows | 9, 10 |
US0(rf/m, mn) | uniform series of $1 payments discounted at the actuarial rate for (mn) periods | 16 |
Greek Characters | ||
∆ (Delta) | difference / change | 4, 12, 13, 16 |
α (alpha) | endogenous projection constant | 13 |
tax adjustment rate for capital gains (losses) | 17 | |
β (beta) | coefficient multiplying an exogenous variable | 13, 15 |
γ (gamma) | scaling factor | 9 |
rate of technological change | 10 | |
financed proportion of the purchase price | 14 | |
percentage between 0 and 100 | 15 | |
change in L0 | 16 | |
% of the investment’s value allowed to be deducted in a given year | 18 | |
δ (delta) | compounding / discounting factor | 9, 10 |
percent compensation for lost revenues | 15 | |
ϵt (epsilon) | average error in the tth period | 13 |
ϵ (epsilon) | random variable component of a risky event | 15 |
η (eta) | capital gains (loss) rate | 14 |
θ (theta) | average tax adjustment coefficient | 11, 17, 18, 19 |
λ (lambda) | average risk aversion coefficient | 15 |
μ (mu) | the expected value of a probability density function | 15 |
π (pi) | insurance premium paid to exchange a risky distribution with a sure value | 12, 15 |
ρ (rho) | correlation coefficient between two random variables | 15 |
σ (sigma) | variance of a probability density function | 15 |
Ratios | ||
ATO | asset turnover ratio | 6 |
ATOT | asset turnover time ratio | 6 |
C | coverage ratio | 14 |
CT | current ratio | 6, 16 |
CTR | current-to-total returns ratio | 14 |
DE | debt-to-equity ratio | 6 |
DS | debt-to-service ratio | 6 |
EM | equity multiplier ratio | 6 |
ITO | inventory turnover ratio | 6 |
ITOT | inventory turnover time ratio | 6 |
PE | price-to-earnings ratio | 6, 14 |
PTO | payable turnover ratio | 6 |
PTOT | payable turnover time ratio | 6 |
QK | quick ratio | 6 |
RTO | receivable turnover ratio | 6 |
RTOT | receivable turnover time ratio | 6 |
SPELL | solvency, profitability, efficiency, liquidity, leverage | 6 |
TIE | times interest earned ratio | 6, 16 |