Vocabulary Matching...

a. The relationship between the maturity of debt and its interest rate b. nterest amount/(Principal Interest)] x (360/Days loan outstanding) g. Method of ranking investment proposals based on the length of time it takes to recover the initial investment. i. Level of current assets that fluctuates within the normal operating cycle. j. Method used to evaluate capital investment decisions that discounts the cash inflows at the firm's cost of capital and compares it to Combined Leverage Temporary Current Assets Effective rate of interest on a discounted loan Effective rate of interest on a loan with a compensating balance Term Structure of Interest Rates Capital Expenditures Modified Payback Method Internal Rate of Return Net Present Value Method Discount Rate the value of the initial invesment m. The interest rate used to determine the present value of future cash flows. n. Current assets less current liabilities s. Method used to rank capital investment alternatives that involves the calculation of the rate of return that equates the cash investment with the present value of the cash inflows generated by the investment. u. Monetary outlays ofcash for projects with term of greater than one year v. [Interest amount(Principal Compensating balance)] x (360/Days loan outstanding) w. Type of leverage which uses debt to magnify EPS y, Unit of sales where TR=TC