公司理财概念及简答

Annuity: A level stream of equal dollar payments that lasts for a fixed time. An example of an annuity is the coupon part of a bond with level annual payments. Average accounting return (AAR): The average project earnings after taxes and depreciation divided by the average book value of the investment during its life. Balance sheet(资产负债表): A statement showing a firm’s accounting value on a particular date. It reflects the equation. Assets = liabilities+ Stockholders’ equity.

Basic IRR rule:Accept the project if IRR is greater than the discount rate; reject the project if IRR is less than the discount rate.

Break-even analysis: Analysis of the level of sales at which a project would make zero profit.

Capital budgeting: Planning and managing expenditures for long-lived assets. Capital markets: Financial markets for long-term debt and for equity shares. Capital structure: The mix of the various debt and equity capital maintained by a firm. Also called financial structure. The composition of a corporation’s securities used to finance its investment activities; the relative proportions of short-term debt, long-term debt, and owners’ equity.Cash flow: Cash generated by

the firm and paid to creditors

and shareholders. It can be

classified as (1) cash flow from

operations, (2) cash flow from

changes in fixed assets, and (3)

cash flow from changes in net

working capital.

Compound interest(复利):

Interest that is earned both on

the initial principal and on

interest earned on the initial

principal in previous periods.

The interest earned in one

period becomes in effect part

of the principal in a following

period.

Compound value: Value of a

sum after investing it over one

or more periods. Also called

future value.

Compounding: Process of

reinvesting each interest

payment to earn more

interest. Compounding is

based on the idea that

interest itself becomes

principal and therefore also

earns interest in subsequent

periods.

Continuous compounding:

Interest compounded

continuously, every instant,

rather than at fixed intervals.

Coupon(券息): The stated

interest on a debt instrument.

Decision trees(决策树): A

graphical representation of

alternative sequential

decisions and the possible

outcomes of those decisions.

Discount: If a bond is selling

below its face value, it is said

to sell at a discount.

Discount rate: Rate used to

calculate the present value of

future cash flows.

Discounted payback period

rule(折现回收期法): An

investment decision rule in

which the cash flows are

discounted at an interest rate

and the payback rule is

applied on these discounted

cash flows.

Discounting: Calculating the

present value of a future

amount. The process is the

opposite of compounding.

Effective annual interest

rate(实际利率): The interest

rate as if it were compounded

once per time period rather

than several times per period.

Erosion(资本侵蚀): Cash-flow

amount transferred to a new

project from customers and

sales of other products of the

firm.

Face value: The value of a

bond that appears on its face.

Also referred to as par value

or principal.

Fixed asset: Long-lived

property owned by a firm that

is used by a firm in the

production of its income.

Tangible fixed assets include

real estate, plant, and

equipment. Intangible fixed

assets

include patents, trademarks,

and customer recognition.

Future value: Value of a sum

after investing it over one or

more periods. Also called

compound value.

Generally Accepted