queez 5 3222_1

Card Set Information

queez 5 3222_1
2014-04-02 00:18:46
queez 3222

queez 5 3222_1
Show Answers:

  1. Book Value
    The net worth of common equity according to a firm’s balance sheet
  2. Liquidation value
    Net amount that can be realized by selling the assets of a firm and paying off the debt
  3. Replacement cost
    Cost to replace a firm's assets
  4. Tobin's q
    Ratio of the market value of the firm to its replacement cost
  5. Intrinsic value
    The present value of a firm's expected future net cash flows discounted by the required rate of return
  6. Market capitalization rate
    The market consensus estimate of the appropriate discount rate for a firm's cash flows
  7. Dividend discount model
    A formula for the intrinsic value of a firm equal to the present value of all expected future dividends
  8. Constant growth dividend discount model
    A form of the dividend discount model that assumes that dividends will grow at a constant rate
  9. Dividend payout ratio
    Percentage of dividends paid out as earnings
  10. Earnings retention ratio (plowback ratio)
    The proportion of the firm's earnings that is reinvested in the business (and not paid out as dividends)
  11. Present value of growth opportunities
    Net present value of a firm's future investments
  12. Two stage dividend discount model
    Dividend discount model in which dividend growth is expected to level off only at some future date
  13. Price-earnings multiple
    The ratio of a stock's price to its earnings per share
  14. PEG ratio
    Ratio of P/E multiple to earnings growth rate
  15. Earnings management
    The practice of using flexibility in accounting rules to manipulate the apparent profitability of the firm