Introduction to Finance

partial financing, 491
f
Current assets to total assets ratio, 456
f
Current liabilities
amounts owed, 396
defining, 395
Current liabilities to total assets ratio, 496
f
Current price/par value, difference (straight-
line amortization), 280
Current ratio, calculation, 427
CV. 
See
Coefficient of variation
Cyclical variations, impact, 498
D
DaimlerChrysler, 361
Dartmouth College v. Woodward
(Supreme 
Court decision), 387
DCF. 
See
Discounted cash flow
Dealer, defined, 312
Dealer system, defined, 200
Debenture bonds, defined, 262
Debit cards, defined, 33
Debt
after-tax cost, calculation, 571
concentration, 202
corporate use, trends, 567–568
cost, 571
financing, 172–173
issuance, 181
management, 113–114
defined, 113
management’s attitude toward, 593
monetization, defined, 107
national, defined, 113
obligations, risk-free securities, 198–203
ratios
example, 584
f
WACC, differences, 589
f
rollover, 494
securities, maturity distribution, 202–203
variations, 592
Debt securities, defined, 15
Default rate, 183
Default risk (credit risk), 68, 212, 281–282
defined, 281
Default risk premium (DRP), 212–214, 218
defined, 197
demand, 281
Defensive activities, defined, 86
Deficit economic unit, defined, 23
Deficit financing
defined, 113
effects, 113–114
Deficits
budget, 171
powers, 110–112
reserves, defined, 121
U.S. operation, 169
Degree of combined leverage (DCL)
defined, 586
equation, example, 586–587
Cost of retained earnings
constant dividend growth model, 572–573
security market line (SML) approach, 
572–573
Cost-push inflation, defined, 210
Cost-saving project, cash flow estimation, 
558–561
total outlays, 559
t
Cost-volume-profit analysis, 445–446
defined, 445
Cost-volume-profit relationships, 446
f
Council of Economic Advisors (CEA), fiscal 
policy formulation, 107
Countries, initial returns, 309
t
Coupon interest, impact, 281
Covenants, defined, 257
Credibility, issue, 386
Credit analysis, 479
Credit analyst, career, 16
Credit bureaus, defined, 479
Credit cards, defined, 37
Credit (default) risk, defined, 68
Credit money, defined, 32
Credit policy, change (analysis), 482
t
Credit ratings, 184
defined, 184
Credit-reporting agencies, 479–480
Credit risk (default risk)
absence, 281–282
annual spreads, 281
f
defined, 65, 281
impact, 281–282
spreads, fluctuation, 281
Credit scores, 184
defined, 184
Credit terms, 481–482
Credit transfer, 97
Credit union
defined, 49
saving with, 56
Cross-sectional analysis, defined, 424
Crowdfunding, 503
Crowding out, defined, 113
Cumulative preferred stock, defined, 268
Currency
anti-counterfeiting efforts, 32
counterfeiting, 31–32
debasing (Greek city-states), 207
demand, changes, 121–122
design changes, 31, 31
f
floating, 39, 40
flow, 121
index, U.S. dollar value (relationship), 143
f
payments mechanism, 95–97
Currency appreciation, 137
Currency depreciation, 137
Currency exchange markets
defined, 135
exchange rate determination, 139
f
Currency exchange rate, 136
appreciation/depreciation, 137–138
defined, 40, 136
factors, 138–142
Currency exchange rate risk, defined, 143–144
Current account, defined, 152
Current account balance, defined, 152
Consumer finance companies, loans 
(provision), 51
Consumer Leasing Act, 94