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| | Swap (finance) - Wikipedia, the free encyclopedia |
 | | A total return swap is a swap, where party A pays the total return of an asset, and party B makes periodic interest payments. | | | In finance a swap is a derivative, where two counterparties exchange one stream of cash flows against another stream. | | | An equity swap is a special type of total return swap, where the underlying asset is a stock, a basket of stocks, or a stock index. |
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http://en.wikipedia.org/wiki/Swaps
(794 words)
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| | Index (WebCab Portfolio v4.2 (J2SE Edition)) |
| | Finds the weights of the (risky) assets of the portfolio(s) which are selected in accordance with the investors utility functions with the highest expected return. | | | Sharpe's Ratio which evaluates the excess return of an asset over the risk free rate of return for each additional unit of risk which the portfolio assumes. | | | Evaluates the expected return of a Portfolio where the expected returns of the assets within the portfolio and the weighting of those asset is known. |
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http://www.webcabcomponents.com/Java/api/portfolio/JavaDocs/index-all.html
(5305 words)
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| | Session 2: Bond (Debt) Finance |
| | Debt finance is more attractive than equity finance, not only because the costs of raising the funds (for example arrangement fees with a bank or issue costs of a bond) are lower, but because the annual return required to attract investors is less than for equity. | | | Junk bonds reflect the return/risk tradeoff in that a higher return is required by the investor to compensate for increased default risk. | | | The interest is tax deductible because convertible bonds are a form of debt the coupon payment can be regarded as a cost of the business and can therefore be used to reduce taxable profit. |
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http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page31.htm
(2311 words)
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| | Bond (finance) - Wikipedia, the free encyclopedia |
| | In finance, a bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon). | | | Bonds and stocks are both securities, but the difference is that stock holders own a part of the issuing company (have an equity stake), whereas bond holders are in essence lenders to the issuer. | | | The market price of a bond is the present value of all future interest and principal payments of the bond discounted at the bond's yield, or rate of return. |
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http://en.wikipedia.org/wiki/Bond_(finance)
(2875 words)
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| | Modern Portfolio Theory |
| | The trade-off between risk and return is one of the central tenets of Finance. | | | Diversification is the only "free lunch" in finance: with diversification, one can achieve higher levels of return without exposing themselves to greater risk. | | | The insight of modern portfolio theory is that maximum correlation is 1, and a portfolio with 2 securities each with the same return and risk will have less risk than the 2 securities individually. |
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http://www.quanthome.com/Quantitative-Finance/Articles/Modern-Portfolio-Theory
(978 words)
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| | Leverage (finance) - Wikipedia, the free encyclopedia |
| | Financial leverage takes the form of borrowing money and reinvesting it with the hope to earn a greater rate of return than the cost of interest. | | | A firm's debt to equity ratio is therefore an indication of its leverage. | | | An unlevered firm can be seen as an all equity firm, whereas a levered firm is made up of ownership equity and debt. |
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http://en.wikipedia.org/wiki/Leverage_(business)
(515 words)
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| | Journal of Financial & Economic Practice |
| | An alternative is to treat return on equity as the sum of the return on invested funds (ROIF – the return on equity the bank would earn if it financed all its assets with equity) and the return from financial leverage (RFFL – the increment to ROIF from adding debt to the capital structure). | | | This study examines the ability of international firms to increase equity returns by using financial leverage and whether this ability varies by host country. | | | This finding provides some evidence that institutional forces within a specific host country are at work to induce firms there to take on the higher risks of financial leverage without obtaining the expected higher equity returns and thereby suggests the existence of a country effect. |
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http://www.bradley.edu/fcba/fin/jfep/issue_3.html
(1386 words)
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| | Finance Glossary : finance, investment and stock market definitions |
| | Yield calculations on bonds aim to show the return on a gilt or bond as a percentage of either... | | | Yield is a measure of the return on an... | | | The yield on a security before the deduction of tax. |
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http://glossary.global-investor.com/pages/glossary.htm?SearchResource=SearchGlossary&ginPtrCode=00000&Search=yield
(1386 words)
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| | Stock Valuation |
| | The present value of the dividend is being taken using the required rate of return as the "i" in a present value formula. | | | A beginning point on stock valuation is to calculate the required rate of return of the stock that we are valuing. | | | Finance professionals get excited over any idea that has a known cash flow; first because it is known (as opposed to being unknown), secondly because it is cash. |
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http://www.markrosa.com/stock_valuation.htm
(846 words)
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| | cost_analysis.py |
| | # In these cases a measure for the cost is the capital, which needs to be # invested in the present, to finance the maintainance costs of the future. | | | float: FV = float(FV) pwf = present_worth_factor(Int,Per) return FV * pwf + PMT*(1+Int*S) * (1-pwf)/Int def present_worth_factor(Int, Per): "Int=interest rate, Per = period: returns a discount factor." """ Returns a standard present worth factor (also often called a discount factor), assuming that interest is paid at the end of the interest payment period. | | | float: FV = float(FV) return math.log10(FV/PV) / math.log10(1+Int) def interest_rate(Per,PV,FV): "Calculate Interest rate required to grow PV to FV." """ Calculates the Interest Rate required to achive a future return of FV with an investment of PV over a number Per interest payment periods. |
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http://www.h7.dion.ne.jp/~harm/cost_analysis.py
(5028 words)
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| | How to diminish the value of return on equity at vulonline.net |
| | Smallcap equity research reports both brands are widely recognized and trusted, providing home equity loans, unsecured loans, and sales finance through over 1400 branches across the united gold oriented, fund invests at least 65% of the fund equity portfolio in shares of gold mines, goldoriented mining finance houses, gold coins, or bullion. | | | Since 1987, banks and finance companies have reported home equity lines of credit under receivables on quarterly call reports and since 1991 have also texas agencies adopt home equity lending rules (3/15 and boma form partnership to provide online training programs for commercial real estate finance industry 3 theory to forecast financial markets behavior. | | | Private debt and equity placement; esop corporate finance; merchant banking. |
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http://www.vulonline.net/how-to-diminish-the-value-of-return-on-equity/how-to-diminish-the-value-of-return-on-equity.html
(181 words)
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| | Yield - Wikipedia, the free encyclopedia |
| | In finance, yield is a measure of return on a security. | | | In economics, yield is a measure of the amount of income an investment generates over time (related to return on investment). | | | In road transport, a yield (American English) or give way (Commonwealth English) traffic sign indicates that a driver of a vehicle must slow down and prepare to stop if necessary (usually while merging into traffic on another road) but does not need to stop if there is no reason to. |
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http://en.wikipedia.org/wiki/Yield
(181 words)
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| | bond |
| | bond, in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. | | | Government bonds are backed by the full faith and credit of the government issuing them, including its taxing power, and sometimes also by specifically designated security. | | | Bonds were sold by the U.S. government to finance both World Wars and are still an important money-raising device. |
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http://www.factmonster.com/ce6/bus/A0808227.html
(328 words)
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| | WetFeet.com > |
| | Corporate finance and accounting professionals are responsible for managing a business’s money—forecasting where it will come from, knowing where it is, and helping its managers decide how to spend it in ways that will ensure the greatest return. | | | In spite of their different roles, finance and accounting are joined at the hip: The higher levels of accounting (budgeting and analysis) blend with financial functions (analysis and projections). | | | In this profile, when we refer to corporate finance, we’re using the broader definition of the phrase; in other words, for our purposes, corporate finance refers to the more day-to-day accounting activities of a business, like accounts payable and accounts receivable, and higher-level strategic financial analysis. |
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http://www.wetfeet.com/asp/careerprofiles_overview.asp?careerpk=10
(1842 words)
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| | Debt leverage - finance |
| | Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money. |
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http://www.comparedefinitions.com/finance/debt-leverage.html
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| | Business Valuation - Finance - Management Portal |
| | Valuation for MandA lays out the steps for measuring and managing value creation in nonpublicly traded entities, and helps investors, executives, and their advisors determine the optimum strategy to enhance both market value and strategic value and maximize return on investment. | | | Noted valuation authority and acclaimed NYU finance professor Aswath Damodaran uses real-world examples and the most current valuation tools, as he guides you through the theory and application of valuation models and highlights their strengths and weaknesses. | | | Unfortunately, these rules have found their way into the valuation profession and are being used by inexperienced valuators in tax and litigation cases, principally due to their simplicity and ease of use. |
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http://www.themanager.org/Knowledgebase/Finance/Valuation.htm
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| | Tax History Project: Presidential Tax Returns -- Welcome to the Tax History Project |
| | Tax Analysts has obtained the individual tax returns filed the last five years by Senate Finance Committee member and presidential candidate John F. Kerry, D-Mass. | | | Individual income tax returns -- including those of public figures -- are private information, protected by law from unauthorized disclosure. | | | Paper copies of the returns can be ordered from Tax Analysts using the associated document numbers. |
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http://www.taxhistory.org/thp/thpwebsite.nsf/Web/PresidentialTaxReturns?OpenDocument
(356 words)
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| | Corporate Finance Network - Business LBO Valuation Model |
| | The LBO Valuation Model analyzes the value of your business from the point of view of a "financial buyer" who owns no other businesses in your industry and, therefore, expects all of its investment return to result solely from the future operations of your business. | | | Therefore, the seller of the business (i.e., you) needs to payoff all of the liabilities of the business (and in all likelihood, the income tax owed as a result of the gain realized on the sale of the assets) from purchase price paid to you by the financial buyer. | | | From a timing standpoint, the LBO Valuation Model assumes that the financial buyer intends to purchase your business at the beginning of year two (2) of your multi-year forecast; and intends to own your business for the ensuing four (4) years, and then sell the business. |
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http://www.corpfin.net/h/demo/lbo.shtml
(484 words)
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| | Finance |
| | Financial management goals and decision making; valuation of bonds and stocks, risk and return analysis, portfolio diversification, market efficiency, asset pricing, cost of capital, agency theory, capital budgeting, financial planning. | | | Valuation of financial securities (primarily equities) using discounted cash flow model; industry, regulatory analysis; financial statement analysis; active portfolio management; value-based management techniques; valuation of firms outside the United States. | | | Valuation of financial securities using cases and financial information technology; macroeconomic and industry analysis, regulatory analysis, financial statement analysis, technical analysis, trading securities, active portfolio management, performance evaluation. |
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http://www.registrar.uiowa.edu/registrar/catalog/TippieCollegeofBusiness/FinanceCourses.html
(1105 words)
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| | Foundations of Financial Management e-Learning Session |
| | Firms with high financial leverage will earn more return on equity as they aren't using as much equity to finance the firm but they are also riskier. | | | The degree of combined leverage allows is to calculate the effect of using both operating and financial leverage to magnify the returns for the firm. | | | The degree of operating leverage (DOL) of a firm is defined as the percentage change in ____ that occurs as a result of a percentage change in sales(Key Term). |
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http://highered.mcgraw-hill.com/sites/0072422645/student_view0/chapter5/e-learning_session.html
(688 words)
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| | Debtor finance for UK businesses from Factoring UK - the debtor finance specialists |
| | Following a request from the discounter for us to help, the following package was put in place; a factoring facility with £1.3m funding limit, stock finance, a promise to review a return to invoice discounting after 3 months, and a trade finance facility to fund pre-sold orders to creditworthy buyers. | | | The MBO was financed out of working capital (invoice discounting and bank overdraft) rather than equity, and hit problems after just 6 weeks when the main funder refused to allow the first tranche of deferred consideration to be paid. | | | This was largely financed by trade creditors and a replacement invoice discounting facility capped at £750k. |
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http://www.factoringuk.com/cases_changing_factor.html
(472 words)
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| | Finance and IT must go together - PC Magazine |
| | Finance directors wanted IT to be more accountable, while IT directors complained that finance couldn't give them the tools with which to measure return on investment. | | | Communication between IT and finance will be crucial to ensure that supplier companies are aligned with their client's business goals, whether businesses are choosing new systems to implement in the coming months, or considering whether existing systems will be supported by software vendors in future. | | | Tony Grace, managing director of Telewest business and former finance director of its consumer division says, for his company at least, the deadlock between finance and IT departments is loosening. |
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http://www.pcmag.co.uk/computing/analysis/2075750/finance-together
(1463 words)
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| | Corporate Finance - 6F:215 |
| | The primary objective of the corporate finance course is to further a student’s understanding of the decisions made by finance managers in organizations. | | | These decisions include choosing between competing investment opportunities, asset valuation, measuring risk and return, financing of the firm's operations, dividend policy, capital structure decisions, and valuation of financial instruments among others. | | | The first direction involves familiarization with the advanced topics in corporate finance such as cash flow analysis under uncertainty, application of asset pricing theory, capital structure issues, dividend policy, valuation of financial instruments, and understanding of agency theory and financial signaling. |
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http://www.biz.uiowa.edu/class/6F215_handa
(470 words)
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| | Minnesota Department of Finance |
| | The Department of Finance (DOF) is responsible for administering the state depository and filing the sales tax return with the Department of Revenue (DOR). | | | The revenue budget amounts should be zero on the agency's revenue budgets, as DOR makes the revenue estimates for sales tax in their revenue budget accounts. | | | When an agency sells a taxable item, the cash collected for the state and local sales tax is deposited into the agency's sales tax clearing revenue budgets (1952 and 9649 -established in Step 1). |
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http://www.finance.state.mn.us/agencyapps/maps/opsman/policies/06section/0602-09.html
(304 words)
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| | Finance |
| | Topics include financial mathematics, valuation of financial and real assets, capital budgeting, capital structure, cost of capital, management of working capital, issuing bonds and stocks, mergers and acquisitions, and international finance. | | | Theories and practice of short-term finance, e.g., areas of cash management, accounts receivable, inventory, accounts, and notes payable management. | | | Economic theories of value as applied to residential and income properties, factors influencing real-property values, apraising real property, framework for real estate investment decisions, rate of return analysis, determinants of real estate investment policy for borrowers and lenders. |
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http://www.acs.utah.edu/GenCatalog/1044/crsdesc/finan.html
(2806 words)
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| | Saturday Evening Post: Preserving Social Security for future generations: Social Security is now a young people's issue |
| | These are the very young people whose future the President is now trying to protect by giving them the option of investing some of their FICA deductions in personal accounts where they would earn a much higher return. | | | Projections are that by 2018, Social Security will be paying out more than it receives in payroll deductions. | | | It would involve drastic cuts in Social Security benefits or increasing the Social Security payroll tax from the current 12.4 to 18 percent. |
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http://www.findarticles.com/p/articles/mi_m1189/is_3_277/ai_n13684163
(1495 words)
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| | Rescue Finance--Struggling Companies Cope By Fusing High Yield And Bank Loans |
| | It is return, pure and simple, that guarantees these financings for Goodyear and other issuers a ready audience. | | | In fact, all three of these sectorsutilities, energy and airlinesare good candidates for rescue financing because they have a fair number of fallen angel issues with looming liquidity issues and with wide swaths of unencumbered assets that can be pledged to support rescue deals. | | | Worse, issuers, particularly those in the whipsawed utility sector, worried that in going long now, they'd be stuck paying the price for a short-term dip in their fortunes for years to come. |
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http://www.fleetcapital.com/resources/capeyes/a06-03-164.html
(1495 words)
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| | Guerrilla Funk: Finance: Price Goes Up, Yield Goes Down |
| | In the real world, when people talk about yield, they're really talking about another figure, called "yield to maturity." This represents the total return you can expect if you buy a bond at a given price and hold it until it matures. | | | When you buy a bond at face value, the yield is simply the coupon, or interest rate. | | | Once you understand the inverse relationship between price and yield, you're ready to take on the bond market's next puzzler: If yields and prices move in opposite directions, how come both high yields and high prices are considered good things? |
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http://www.guerrillafunk.com/finance/priceupyielddown.html
(1495 words)
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| | Finance & Development, March 2003 - Should MENA Countries Float or Peg? |
| | The central bank operates the managed float primarily by intervening in the foreign exchange market, because the country has virtually no money markets and the financial rates of return (equivalent to interest rates) are controlled. | | | The choice of a managed float seems appropriate, given Iran's vulnerability to terms of trade shocks, ongoing trade reforms, plans for gradual price liberalization, and prospects of large capital inflows. | | | The speed and sequencing of improvements in financial systems and progress in fiscal adjustment would be major factors, and the scope for flexibility may range from loosely managed floats to intermediate regimes. |
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http://www.imf.org/external/pubs/ft/fandd/2003/03/jbil.htm
(2397 words)
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