Frequently Used Symbols/Abbreviations

Question 0

ADR

Answer 0

American Depository Receipt

Question 1

ACP

Answer 1

Average collection period

Question 2

AFN

Answer 2

Additional Funds Needed

Question 3

AMT

Answer 3

Alternative Minimum Tax

Question 4

APR

Answer 4

Annual Percentage Rate

Question 5

b

Answer 5

Beta coefficient (a measure of an asset’s riskiness)

Question 6

b(t) is subscripted)

Answer 6

Levered beta

Question 7

b(u) is subscripted)

Answer 7

Unlevered beta

Question 8

BEP

Answer 8

Basic Earning Power

Question 9

BVPS

Answer 9

Book Value Per Share

Question 10

CAPEX

Answer 10

Capital Expenditures

Question 11

CAPM

Answer 11

Capital Asset Pricing Model

Question 12

CCC

Answer 12

Cash Conversion Cycle

Question 13

CF

Answer 13

Cash Flow

Question 14

CR

Answer 14

Conversion Ratio

Question 15

CV

Answer 15

Coefficient of Variation

Question 16

D(p) is subscripted)

Answer 16

Dividend of Preferred Stock

Question 17

D(t) is subscripted)

Answer 17

Dividend in Period t

Question 18

DCF

Answer 18

Discounted Cash Flow

Question 19

D/E

Answer 19

Debt-to-Equity Ratio

Question 20

DEP

Answer 20

Depreciation

Question 21

D(1)/P(0) are subscripted)

Answer 21

Expected Dividend Yield

Question 22

DPS

Answer 22

Dividends Per Share

Question 23

DRIP

Answer 23

Dividend Reinvestment Plan

Question 24

DRP

Answer 24

Default Risk Premium

Question 25

DSO

Answer 25

Days Sales Outstanding

Question 26

e

Answer 26

Approximately = to 2.7183

Question 27

EAA

Answer 27

Equivalent Annual Annuity

Question 28

EAR

Answer 28

Effective Annual Rate, EFF%

Question 29

EBIT

Answer 29

Earnings before interest and taxes; operating income

Question 30

EBITDA

Answer 30

Earnings before interest, taxes, depreciation, and amortization

Question 31

EPS

Answer 31

Earnings Per Share

Question 32

EVA

Answer 32

Economic Value Added

Question 33

F

Answer 33

(1) Fixed operating costs

(2) Floating cost

Question 34

FCF

Answer 34

Free Cash Flow

Question 35

FV(n) is subscripted)

Answer 35

Future value for Year N

Question 36

FVA(n) is subscripted)

Answer 36

Future value of an annuity for N years

Question 37

g

Answer 37

Growth rate in earnings, dividends, and stock prices

Question 38

GAAP

Answer 38

U.S. Generally Accepted Accounting Principles (standards)

Question 39

HV(n)

Answer 39

Firm’s horizon value at t = N

Question 40

I

Answer 40

Interest rate; also referred to as r

Question 41

IFRS

Answer 41

International Financial Reporting Standards

Question 42

I(per)

Answer 42

Periodic Interest Rate

Question 43

I/YR

Answer 43

Interest Rate Key on Some Calculators

Question 44

INT

Answer 44

Interest Payment in Dollars

Question 45

IP

Answer 45

Inflation Premium

Question 46

IPO

Answer 46

Initial Public Offering

Question 47

IRR

Answer 47

Internal Rate of Return

Question 48

LIBOR

Answer 48

London Interbank Offer Rate

Question 49

1n(P/X) <-( NOT subscripted)

Answer 49

Natural logarithm of stock price divided by exercise price

Question 50

LP

Answer 50

Liquidity premium

Question 51

M

Answer 51

Maturity value of a bond

Question 52

M/B

Answer 52

Market-to-book ratio

Question 53

MIRR

Answer 53

Modified internal rate of return

Question 54

MRP

Answer 54

Maturity risk premium

Question 55

MVA

Answer 55

Market value added

Question 56

N

Answer 56

Calculator key denoting number of periods

Question 57

N(d(i)) is subscripted)

Answer 57

Area under a standard normal distribution curve

Question 58

NOPAT

Answer 58

Net operating profit after taxes, EBIT(1-T)

Question 59

NOWC

Answer 59

Net operating working capital

Question 60

NPV

Answer 60

Net present value

Question 61

P

Answer 61

Sales price per unit of product sold