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 |