Julie Dahlquist; Rainford Knight

Symbols

“C&G” Credit Ratings 12.1 Overview of US Financial Markets

(ESG) 2.4 Agency Issues: Shareholders and Corporate Boards

(GAAP) 5.8 Reporting Financial Activity

2014 Winter Olympics 16.5 Choosing between Projects

3M 10.2 Bond Valuation

3M (MMM) 15.1 Risk and Return to an Individual Asset

401k plans 1.1 What Is Finance?

A

AAPL (Apple) 15.5 Using Excel to Make Investment Decisions

accounting equation 4.2 Economic Basis for Accrual Accounting, 5.2 The Balance Sheet

Accounting Standards Update No. 2014-09 4.3 How Does a Company Recognize a Sale and an Expense?

accounts receivable aging schedule 19.4 Receivables Management

accounts receivable turnover ratio 6.2 Operating Efficiency Ratios

accrual basis 5.5 The Statement of Cash Flows

accrual-basis accounting 4.1 Cash versus Accrual Accounting

acid-test ratio 6.3 Liquidity Ratios

after-tax cost of debt 17.2 The Costs of Debt and Equity Capital

agency problem 2.4 Agency Issues: Shareholders and Corporate Boards

Agency theory 2.4 Agency Issues: Shareholders and Corporate Boards

agent 2.4 Agency Issues: Shareholders and Corporate Boards

AIG 2.3 Role of the Board of Directors

Alibaba 6.5 Market Value Ratios

allowance for doubtful accounts 19.4 Receivables Management

Alphabet (Google) 12.1 Overview of US Financial Markets

Amazon 1.5 Markets and Participants, 2.1 Business Structures, 6.5 Market Value Ratios, 11.2 Dividend Discount Models (DDMs), 11.2 Dividend Discount Models (DDMs), 11.3 Discounted Cash Flow (DCF) Model, 12.1 Overview of US Financial Markets

Amazon (AMZN) 6.5 Market Value Ratios

American Airlines Why It Matters, Why It Matters, 17.3 Calculating the Weighted Average Cost of Capital, 17.3 Calculating the Weighted Average Cost of Capital, Why It Matters

American Express 19.3 Cash Management

American Institute of Certified Public Accountants (AICPA) 4.3 How Does a Company Recognize a Sale and an Expense?

American options 20.3 Exchange Rates and Risk

American Superconductor Corporation 6.2 Operating Efficiency Ratios

amortization 11.1 Multiple Approaches to Stock Valuation

AMZN (Amazon) 15.5 Using Excel to Make Investment Decisions

annual meeting 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

annual report 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

annuity 8.2 Annuities

annuity due 8.2 Annuities

Apple 6.5 Market Value Ratios, 12.1 Overview of US Financial Markets, 17.1 The Concept of Capital Structure

Apple, Inc. 4.4 When Should a Company Capitalize or Expense an Item?, 5.1 The Income Statement, 5.1 The Income Statement, 5.1 The Income Statement, 5.2 The Balance Sheet, 5.2 The Balance Sheet, 5.2 The Balance Sheet, 5.3 The Relationship between the Balance Sheet and the Income Statement, 5.4 The Statement of Owner’s Equity, 5.4 The Statement of Owner’s Equity, 5.5 The Statement of Cash Flows, 5.7 Common-Size Statements, 5.7 Common-Size Statements, 5.8 Reporting Financial Activity, 5.8 Reporting Financial Activity, 10.1 Characteristics of Bonds, 15.1 Risk and Return to an Individual Asset

appreciated 20.3 Exchange Rates and Risk

arithmetic average return 15.1 Risk and Return to an Individual Asset

arithmetic mean 13.1 Measures of Center

articles of incorporation 2.1 Business Structures

articles of organization 2.1 Business Structures

assets 5.2 The Balance Sheet

AT&T 17.3 Calculating the Weighted Average Cost of Capital

audit committee (AC) 2.3 Role of the Board of Directors

B

bad debt expense 19.4 Receivables Management

balance sheet 18.1 The Importance of Forecasting

Bank of America Merrill Lynch 1.5 Markets and Participants

Banking Act of 1935 1.1 What Is Finance?

bankruptcies 19.4 Receivables Management

bar graph 13.6 Data Visualization and Graphical Displays

Bass Pro Shops 6.6 Profitability Ratios and the DuPont Method

benchmarking 19.1 What Is Working Capital?

Bennett 10.1 Characteristics of Bonds

Berkshire Hathaway 11.2 Dividend Discount Models (DDMs)

Berkshire Hathaway (BRK) 12.4 Historical Picture of Returns to Stocks

Bernard L. Madoff Investment Securities LLC 2.4 Agency Issues: Shareholders and Corporate Boards

best-fit linear regression model 14.3 Best-Fit Linear Model

beta 14.4 Regression Applications in Finance, 15.3 The Capital Asset Pricing Model (CAPM)

Big 5 Sporting Goods 18.1 The Importance of Forecasting, 18.2 Forecasting Sales

bill of lading 19.2 What Is Trade Credit?

Billion Prices Project 3.2 Macroeconomics

Billions 1.1 What Is Finance?

Biogen 11.2 Dividend Discount Models (DDMs), 11.3 Discounted Cash Flow (DCF) Model

Bivariate data 13.6 Data Visualization and Graphical Displays

BlackRock 12.1 Overview of US Financial Markets

Blue Ribbon Companies 2.3 Role of the Board of Directors

Bluebonnet Industries 17.1 The Concept of Capital Structure

board of directors 2.1 Business Structures

bond call 10.4 Risks of Interest Rates and Default

bond laddering 10.4 Risks of Interest Rates and Default

Bond price 10.1 Characteristics of Bonds

bond ratings 10.4 Risks of Interest Rates and Default

bond returns 12.3 Historical Picture of Returns to Bonds

Book value per share 6.5 Market Value Ratios

Brazil 20.3 Exchange Rates and Risk

British 20.3 Exchange Rates and Risk

Brokers 1.5 Markets and Participants

Budget analyst 1.4 Careers in Finance

Buffett 11.2 Dividend Discount Models (DDMs), 12.3 Historical Picture of Returns to Bonds, 12.4 Historical Picture of Returns to Stocks

Bureau of Labor Statistics 3.2 Macroeconomics, 7.4 Applications of TVM in Finance

Bureau of Labor Statistics (BLS) 1.4 Careers in Finance, 3.2 Macroeconomics

business cycle 3.3 Business Cycles and Economic Activity

Business Cycle Dating Committee 10.3 Using the Yield Curve

Business finance 1.1 What Is Finance?

C

C corporation 2.1 Business Structures

Cabela’s 6.6 Profitability Ratios and the DuPont Method

call option 20.3 Exchange Rates and Risk

Call risk 10.4 Risks of Interest Rates and Default

capital 17.1 The Concept of Capital Structure

capital asset pricing model (CAPM) 15.3 The Capital Asset Pricing Model (CAPM)

capital budgeting Why It Matters

capital employed 11.1 Multiple Approaches to Stock Valuation

capital gain yield 15.1 Risk and Return to an Individual Asset

capital gains 10.4 Risks of Interest Rates and Default

capital investments 9.1 Timing of Cash Flows

capital market 1.7 Financial Instruments

Capital structure 1.1 What Is Finance?, 17.1 The Concept of Capital Structure

capitalize 4.4 When Should a Company Capitalize or Expense an Item?

CAPM 15.3 The Capital Asset Pricing Model (CAPM)

Carnival Cruises 10.4 Risks of Interest Rates and Default

Carrying costs 19.5 Inventory Management

cash basis 5.5 The Statement of Cash Flows

cash budget 19.3 Cash Management

cash conversion cycle 19.1 What Is Working Capital?

cash cycle 19.1 What Is Working Capital?

cash deficit 18.5 Forecasting Cash Flow and Assessing the Value of Growth

cash discounts 19.2 What Is Trade Credit?

cash flow 9.1 Timing of Cash Flows

cash forecast 18.5 Forecasting Cash Flow and Assessing the Value of Growth

cash rate 10.3 Using the Yield Curve

cash ratio 6.3 Liquidity Ratios

cash surplus 18.5 Forecasting Cash Flow and Assessing the Value of Growth

cash-basis accounting 4.1 Cash versus Accrual Accounting

Cavallo 3.2 Macroeconomics

CDs 12.1 Overview of US Financial Markets

Census Bureau 3.2 Macroeconomics

CEO 2.3 Role of the Board of Directors

certificate of deposit (CD) 13.1 Measures of Center

ceteris paribus 3.1 Microeconomics

CFO 1.2 The Role of Finance in an Organization

Chapter 11 bankruptcy 4.4 When Should a Company Capitalize or Expense an Item?

Chicago Board of Trade 20.2 Commodity Price Risk

Chicago Mercantile Exchange 20.2 Commodity Price Risk

chief financial officer 1.2 The Role of Finance in an Organization

chief financial officer (CFO) 2.3 Role of the Board of Directors, 14.1 Correlation Analysis

Chris’s Landscaping 4.2 Economic Basis for Accrual Accounting

City of Chicago 10.1 Characteristics of Bonds

Clear Lake Sporting Goods Why It Matters, 6.2 Operating Efficiency Ratios, 18.1 The Importance of Forecasting

Close (closely held) corporation 2.1 Business Structures

Cloud storage 1.3 Importance of Data and Technology

CME Group Inc. 20.2 Commodity Price Risk

Coca-Cola 10.2 Bond Valuation, 14.6 Use of R Statistical Analysis Tool for Regression Analysis, 17.3 Calculating the Weighted Average Cost of Capital, 17.3 Calculating the Weighted Average Cost of Capital

Commercial paper (CP) 1.7 Financial Instruments, 12.1 Overview of US Financial Markets

common stock Why It Matters

common-size 18.1 The Importance of Forecasting

comparable company analysis (comps) 11.1 Multiple Approaches to Stock Valuation

compensating balances 19.3 Cash Management

compounding interest 7.4 Applications of TVM in Finance

compounding period 7.4 Applications of TVM in Finance

comptroller 1.2 The Role of Finance in an Organization

conference call 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

conflicts of interest 2.3 Role of the Board of Directors

constant perpetuity 8.1 Perpetuities

consumer price index (CPI) 3.2 Macroeconomics, 7.4 Applications of TVM in Finance, 12.1 Overview of US Financial Markets, 12.2 Historical Picture of Inflation, 13.6 Data Visualization and Graphical Displays

Consumer Price Index for All Urban Consumers: All Items (CPIAUCSL) 3.2 Macroeconomics

contra-asset 19.4 Receivables Management

conversion price 17.6 Alternative Sources of Funds

conversion ratio 17.6 Alternative Sources of Funds

Convertible bonds 10.1 Characteristics of Bonds, 17.6 Alternative Sources of Funds

core inflation index 3.2 Macroeconomics

corporate charter 2.1 Business Structures

Corporate Finance Institute 19.4 Receivables Management

Corporate governance 2.3 Role of the Board of Directors, 2.3 Role of the Board of Directors

corporation 2.1 Business Structures

Correlation 14.1 Correlation Analysis

Correlation analysis Why It Matters

correlation coefficient 14.1 Correlation Analysis

Costa Rica 20.3 Exchange Rates and Risk

Coupon payment 10.1 Characteristics of Bonds

Coupon rate 10.1 Characteristics of Bonds

COVID-19 6.5 Market Value Ratios, 10.3 Using the Yield Curve, 15.2 Risk and Return to Multiple Assets, 16.5 Choosing between Projects, 18.3 Pro Forma Financials, Why It Matters, 20.1 The Importance of Risk Management

CPI Inflation Calculator 3.2 Macroeconomics

CPI, 13.6 Data Visualization and Graphical Displays

credit 4.2 Economic Basis for Accrual Accounting

Credit analyst 1.4 Careers in Finance

credit period 19.2 What Is Trade Credit?, 19.4 Receivables Management

credit rating 19.1 What Is Working Capital?

credit risk 3.4 Interest Rates, 10.4 Risks of Interest Rates and Default

Credit Suisse 12.4 Historical Picture of Returns to Stocks

credit terms 19.4 Receivables Management

Cuban Why It Matters

Current assets 5.2 The Balance Sheet, 19.1 What Is Working Capital?

Current liabilities 5.2 The Balance Sheet

current ratio 6.3 Liquidity Ratios

CVS 15.1 Risk and Return to an Individual Asset, 15.1 Risk and Return to an Individual Asset

CVS Health Corp. (CVS) 15.1 Risk and Return to an Individual Asset, 15.1 Risk and Return to an Individual Asset

CVS Pharmacy (CVS) 6.5 Market Value Ratios

D

DAL 15.1 Risk and Return to an Individual Asset

Damodaran 6.6 Profitability Ratios and the DuPont Method, 12.3 Historical Picture of Returns to Bonds, 12.3 Historical Picture of Returns to Bonds, 12.3 Historical Picture of Returns to Bonds, 12.4 Historical Picture of Returns to Stocks, 12.4 Historical Picture of Returns to Stocks, 17.5 Optimal Capital Structure

Danko Why It Matters

Data digitization 1.3 Importance of Data and Technology

Data visualization 13.6 Data Visualization and Graphical Displays

days’ sales 6.2 Operating Efficiency Ratios

Days’ sales in inventory 6.2 Operating Efficiency Ratios

dealers 1.5 Markets and Participants

debenture 12.1 Overview of US Financial Markets

debit 4.2 Economic Basis for Accrual Accounting

debt-to-assets ratio 6.4 Solvency Ratios

debt-to-equity ratio 6.4 Solvency Ratios

deep discount bonds 10.1 Characteristics of Bonds

default 10.1 Characteristics of Bonds

Default risk 1.1 What Is Finance?, 10.4 Risks of Interest Rates and Default

Delta Airlines 10.4 Risks of Interest Rates and Default

Delta Airlines (DAL) 15.1 Risk and Return to an Individual Asset, 15.1 Risk and Return to an Individual Asset, 15.1 Risk and Return to an Individual Asset

Demand 3.1 Microeconomics

demand curve 3.1 Microeconomics

Democrats 1.6 Microeconomic and Macroeconomic Matters

Department of Commerce 3.2 Macroeconomics

depreciated 20.3 Exchange Rates and Risk

Depreciation 4.4 When Should a Company Capitalize or Expense an Item?, 5.1 The Income Statement, 11.1 Multiple Approaches to Stock Valuation

derivative 20.3 Exchange Rates and Risk

direct method 5.5 The Statement of Cash Flows

discount bond 10.2 Bond Valuation

discount period 19.2 What Is Trade Credit?

discount rate 7.4 Applications of TVM in Finance, 8.2 Annuities

discount window 12.1 Overview of US Financial Markets

discounted cash flow (DCF) 11.3 Discounted Cash Flow (DCF) Model

discounted payback period 16.4 Alternative Methods

Disney 15.1 Risk and Return to an Individual Asset

Diversifiable risk 1.1 What Is Finance?

diversification 15.2 Risk and Return to Multiple Assets

dividend 11.1 Multiple Approaches to Stock Valuation

dividend discount model (DDM) 11.2 Dividend Discount Models (DDMs)

Dividend yield 11.1 Multiple Approaches to Stock Valuation, 15.1 Risk and Return to an Individual Asset

dividends 5.3 The Relationship between the Balance Sheet and the Income Statement

DJIA 14.4 Regression Applications in Finance

Domestic corporation 2.1 Business Structures

double-entry accounting 4.2 Economic Basis for Accrual Accounting

Dow 30 1.8 Concepts of Time and Value, 12.4 Historical Picture of Returns to Stocks

Dow Jones Company 19.1 What Is Working Capital?

Dow Jones Industrial Average (DJIA) 1.8 Concepts of Time and Value, 12.4 Historical Picture of Returns to Stocks, 13.5 Probability Distributions, 14.4 Regression Applications in Finance

Dun & Bradstreet 19.1 What Is Working Capital?, 19.1 What Is Working Capital?

DuPont method 6.6 Profitability Ratios and the DuPont Method

duration 10.4 Risks of Interest Rates and Default, 20.4 Interest Rate Risk

Duration risk 10.4 Risks of Interest Rates and Default

E

E-Trade 1.5 Markets and Participants

e-trail 1.3 Importance of Data and Technology

earnings per share (EPS) 11.1 Multiple Approaches to Stock Valuation

Earnings per share (EPS) 6.5 Market Value Ratios

EBIT 11.1 Multiple Approaches to Stock Valuation

EBITDA 5.1 The Income Statement

EBITDA (earnings before interest, taxes, depreciation, and amortization) 6.5 Market Value Ratios

Economic exposure 3.5 Foreign Exchange Rates

Economic risk 20.3 Exchange Rates and Risk

Economic value 1.8 Concepts of Time and Value

Economics 1.6 Microeconomic and Macroeconomic Matters

EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) 2.6 Companies in Domestic and Global Markets

EDGAR system 2.6 Companies in Domestic and Global Markets

effective annual rate (EAR) 15.1 Risk and Return to an Individual Asset

effective interest rate 8.4 Stated versus Effective Rates

efficiency ratios 6.2 Operating Efficiency Ratios

EMC Corporation 9.1 Timing of Cash Flows

empirical rule 13.5 Probability Distributions

Enron 2.4 Agency Issues: Shareholders and Corporate Boards, 10.4 Risks of Interest Rates and Default

Enterprise value (EV) 11.1 Multiple Approaches to Stock Valuation

enterprise value (EV) multiples 11.1 Multiple Approaches to Stock Valuation

equal annuity approach 16.5 Choosing between Projects

Equifax 8.3 Loan Amortization

Equifax Small Business 19.1 What Is Working Capital?

equilibrium 3.1 Microeconomics

equilibrium price 3.1 Microeconomics

equity multiples 11.1 Multiple Approaches to Stock Valuation

European options 20.3 Exchange Rates and Risk

European Union 20.3 Exchange Rates and Risk

Excel 7.3 Methods for Solving Time Value of Money Problems, 9.1 Timing of Cash Flows, 9.2 Unequal Payments Using a Financial Calculator or Microsoft Excel, 13.5 Probability Distributions, 16.6 Using Excel to Make Company Investment Decisions, 18.5 Forecasting Cash Flow and Assessing the Value of Growth, 19.6 Using Excel to Create the Short-Term Plan

exchange rate 20.3 Exchange Rates and Risk

exchange-traded funds (ETFs) 1.1 What Is Finance?, 12.1 Overview of US Financial Markets, 12.1 Overview of US Financial Markets

exercising 20.3 Exchange Rates and Risk

expansion 3.3 Business Cycles and Economic Activity

expected value 13.5 Probability Distributions

expense 4.1 Cash versus Accrual Accounting

expense recognition 4.4 When Should a Company Capitalize or Expense an Item?

expenses 5.1 The Income Statement

Experian 8.3 Loan Amortization

Experian Business 19.1 What Is Working Capital?

expiration date 20.3 Exchange Rates and Risk

exponential distribution 13.4 Statistical Distributions

extreme values 13.1 Measures of Center

ExxonMobil (XOM) 15.1 Risk and Return to an Individual Asset

F

Facebook 1.5 Markets and Participants, 11.2 Dividend Discount Models (DDMs), 11.3 Discounted Cash Flow (DCF) Model, 12.1 Overview of US Financial Markets

Facebook (FB) 15.1 Risk and Return to an Individual Asset

factoring 19.1 What Is Working Capital?

FASB (Financial Accounting Standards Board) 5.5 The Statement of Cash Flows

federal funds 1.7 Financial Instruments, 12.1 Overview of US Financial Markets

Federal Reserve 7.4 Applications of TVM in Finance, 12.1 Overview of US Financial Markets, 12.1 Overview of US Financial Markets

Federal Reserve Bank of New York 12.1 Overview of US Financial Markets

Federal Reserve Economic Data (FRED) 3.6 Sources and Characteristics of Economic Data

Federal Reserve funds rate (federal funds rate) 10.1 Characteristics of Bonds

Federal Reserve System (the Fed) 10.2 Bond Valuation

Fidelity 12.1 Overview of US Financial Markets

Fidelity Investments Inc. 15.2 Risk and Return to Multiple Assets

Finance professor 1.4 Careers in Finance

Financial Accounting Standards Board (FASB) 4.1 Cash versus Accrual Accounting

Financial analyst 1.4 Careers in Finance, Why It Matters

financial calculator 13.2 Measures of Spread, 14.1 Correlation Analysis

financial crisis of 2008 12.1 Overview of US Financial Markets

financial distress 17.5 Optimal Capital Structure

Financial examiner 1.4 Careers in Finance

Financial Industry Regulatory Authority (FINRA) 1.1 What Is Finance?

financial instrument 7.2 Time Value of Money (TVM) Basics

financial intermediary 1.5 Markets and Participants

financial leverage 17.1 The Concept of Capital Structure

Financial manager 1.4 Careers in Finance

Financial markets and institutions 1.1 What Is Finance?

financial risk 7.2 Time Value of Money (TVM) Basics

financing activities 18.1 The Importance of Forecasting

firm-specific risk 15.2 Risk and Return to Multiple Assets

Fisher effect 7.4 Applications of TVM in Finance

Fitch 12.1 Overview of US Financial Markets

fixed-income securities 10.4 Risks of Interest Rates and Default

floating-rate bonds 10.1 Characteristics of Bonds

floor planning 19.1 What Is Working Capital?

Florence 20.3 Exchange Rates and Risk

flotation costs 17.6 Alternative Sources of Funds

Foley 1.3 Importance of Data and Technology

Ford 10.4 Risks of Interest Rates and Default

Ford Motor Company 19.3 Cash Management

forecast Why It Matters

Foreign corporation 2.1 Business Structures

Form 10-K 2.5 Interacting with Investors, Intermediaries, and Other Market Participants, 19.3 Cash Management

Fortune 2.3 Role of the Board of Directors

Fortune 500 14.2 Linear Regression Analysis, 14.5 Predictions and Prediction Intervals

forward contract 20.3 Exchange Rates and Risk

FRED 3.6 Sources and Characteristics of Economic Data

free cash flow 5.5 The Statement of Cash Flows

Free cash flow (FCF) 5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF)

frequency distribution 13.4 Statistical Distributions

future value 9.1 Timing of Cash Flows

future value (FV) 7.2 Time Value of Money (TVM) Basics

futures contract 20.2 Commodity Price Risk

G

GAAP 4.1 Cash versus Accrual Accounting

gains 4.2 Economic Basis for Accrual Accounting, 5.1 The Income Statement

Gates 12.3 Historical Picture of Returns to Bonds, 12.4 Historical Picture of Returns to Stocks

GDP 3.2 Macroeconomics

GDP deflator 3.2 Macroeconomics

general obligation (GO) bonds 12.1 Overview of US Financial Markets

Generally Accepted Accounting Principles (GAAP) 2.6 Companies in Domestic and Global Markets, 6.1 Ratios: Condensing Information into Smaller Pieces, 19.5 Inventory Management

geometric average return 15.1 Risk and Return to an Individual Asset

geometric mean 13.1 Measures of Center

Germany 20.3 Exchange Rates and Risk

Giving Pledge 12.3 Historical Picture of Returns to Bonds, 12.4 Historical Picture of Returns to Stocks

Glass-Steagall Act (1933) 1.1 What Is Finance?

global markets 2.6 Companies in Domestic and Global Markets

Goodyear Tire and Rubber 17.3 Calculating the Weighted Average Cost of Capital

Google 11.2 Dividend Discount Models (DDMs), 11.2 Dividend Discount Models (DDMs), 11.3 Discounted Cash Flow (DCF) Model

Gordon growth model 11.2 Dividend Discount Models (DDMs)

Governmental Accounting Standards Board (GASB) 4.1 Cash versus Accrual Accounting

Graham 12.4 Historical Picture of Returns to Stocks

graphic user interface (GUI) 13.7 The R Statistical Analysis Tool

Great Depression 1.1 What Is Finance?

Great Recession 12.3 Historical Picture of Returns to Bonds

Gross 12.3 Historical Picture of Returns to Bonds

gross domestic product 7.4 Applications of TVM in Finance

Gross domestic product (GDP) 3.2 Macroeconomics

gross working capital 19.1 What Is Working Capital?

growing perpetuity 8.1 Perpetuities

growth rate 7.2 Time Value of Money (TVM) Basics, 11.2 Dividend Discount Models (DDMs)

H

Harding 1.6 Microeconomic and Macroeconomic Matters

hedging 20.1 The Importance of Risk Management

Helu Why It Matters

Hewlett-Packard 2.1 Business Structures

histogram 13.6 Data Visualization and Graphical Displays

holding period percentage return 15.1 Risk and Return to an Individual Asset

Houston 20.3 Exchange Rates and Risk

hybrid form of business 2.1 Business Structures

I

IBM 17.3 Calculating the Weighted Average Cost of Capital

IEI 12.1 Overview of US Financial Markets

in inventory 6.2 Operating Efficiency Ratios

income statement 5.1 The Income Statement, 18.1 The Importance of Forecasting

income statement (net income) 4.2 Economic Basis for Accrual Accounting

Indenture 12.1 Overview of US Financial Markets

index 3.6 Sources and Characteristics of Economic Data

indirect method 5.5 The Statement of Cash Flows

individual retirement accounts (IRAs) 1.1 What Is Finance?

inflation 3.2 Macroeconomics, 3.2 Macroeconomics, 7.4 Applications of TVM in Finance, 12.1 Overview of US Financial Markets

Inflation risk 1.1 What Is Finance?

initial public offering 12.1 Overview of US Financial Markets

initial public offerings (IPOs) 1.5 Markets and Participants

Insurance underwriter 1.4 Careers in Finance

intangible assets 11.1 Multiple Approaches to Stock Valuation

intercept 14.4 Regression Applications in Finance

interest 7.1 Now versus Later Concepts

interest income 10.1 Characteristics of Bonds

interest rate risk 10.4 Risks of Interest Rates and Default

interest tax shield 17.4 Capital Structure Choices

internal rate of return (IRR) 16.3 Internal Rate of Return (IRR) Method

Internal Revenue Service 4.1 Cash versus Accrual Accounting

International Federation of Accountants (IFAC) 4.3 How Does a Company Recognize a Sale and an Expense?

International Financial Reporting Standards (IFRS) 2.5 Interacting with Investors, Intermediaries, and Other Market Participants, 2.6 Companies in Domestic and Global Markets, 2.6 Companies in Domestic and Global Markets, 4.1 Cash versus Accrual Accounting

internet 4.4 When Should a Company Capitalize or Expense an Item?

interquartile range (IQR) 13.3 Measures of Position

intrinsic value 11.2 Dividend Discount Models (DDMs)

Inventory turnover 6.2 Operating Efficiency Ratios

investing activities 18.1 The Importance of Forecasting

investment 7.1 Now versus Later Concepts

investment grade 10.4 Risks of Interest Rates and Default

Investment relations associate 1.4 Careers in Finance

Investments 1.1 What Is Finance?

Investopedia 6.5 Market Value Ratios

investor 2.1 Business Structures

investor relations (IR) 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

iPhone 1.6 Microeconomic and Macroeconomic Matters

Italy 20.3 Exchange Rates and Risk

J

Japan 3.6 Sources and Characteristics of Economic Data, 3.6 Sources and Characteristics of Economic Data

Jensen’s alpha 15.4 Applications in Performance Measurement

Johnson & Johnson 12.1 Overview of US Financial Markets

junk bonds 10.1 Characteristics of Bonds

just-in-time inventory 19.1 What Is Working Capital?

K

KB Homes 17.3 Calculating the Weighted Average Cost of Capital, 17.3 Calculating the Weighted Average Cost of Capital

Khan Academy 5.4 The Statement of Owner’s Equity

Korean 20.3 Exchange Rates and Risk

Kraft Heinz 17.3 Calculating the Weighted Average Cost of Capital, 17.3 Calculating the Weighted Average Cost of Capital

Kroger 17.3 Calculating the Weighted Average Cost of Capital, 17.3 Calculating the Weighted Average Cost of Capital

L

law of demand 3.1 Microeconomics

letter of credit 19.2 What Is Trade Credit?

levered equity 17.4 Capital Structure Choices

liabilities 5.2 The Balance Sheet

limited liability corporation (LLC) 2.1 Business Structures

limited liability partnership (LLP) 2.1 Business Structures

linear correlation 14.1 Correlation Analysis

linear regression Why It Matters

liquid asset 7.4 Applications of TVM in Finance

Liquidity 2.1 Business Structures, 6.3 Liquidity Ratios, 19.1 What Is Working Capital?

Liquidity risk 10.4 Risks of Interest Rates and Default

Loan amortization 8.3 Loan Amortization

Loan officer 1.4 Careers in Finance

London 20.3 Exchange Rates and Risk

London Interbank Offered Rate (LIBOR) 10.1 Characteristics of Bonds, 20.4 Interest Rate Risk

long-term asset 4.4 When Should a Company Capitalize or Expense an Item?

loss 5.1 The Income Statement

losses 4.2 Economic Basis for Accrual Accounting

lower-volatility investments 13.5 Probability Distributions

lump sum 8.2 Annuities

LUV 15.1 Risk and Return to an Individual Asset

M

Macroeconomics 3.2 Macroeconomics

Malkiel 12.1 Overview of US Financial Markets

management discussion and analysis (MD&A) 5.8 Reporting Financial Activity

margin 20.2 Commodity Price Risk

market capitalization 11.1 Multiple Approaches to Stock Valuation

market risk premium 15.3 The Capital Asset Pricing Model (CAPM)

market value ratios 6.5 Market Value Ratios

Market Watch 6.5 Market Value Ratios

marketable securities 19.1 What Is Working Capital?

MarketWatch 15.3 The Capital Asset Pricing Model (CAPM), 17.3 Calculating the Weighted Average Cost of Capital

marking to market 20.2 Commodity Price Risk

Massachusetts Institute of Technology 3.2 Macroeconomics

MasterCard 1.1 What Is Finance?, 19.3 Cash Management

Maturity date 10.1 Characteristics of Bonds

McDonald’s Corporation 4.4 When Should a Company Capitalize or Expense an Item?

McKinley Investment Management 15.4 Applications in Performance Measurement

McKinsey & Company 16.5 Choosing between Projects

median 13.1 Measures of Center

method of least squares 14.2 Linear Regression Analysis

Mexican peso 3.5 Foreign Exchange Rates

Mexico 3.5 Foreign Exchange Rates

Miami 20.3 Exchange Rates and Risk

microeconomics 3.1 Microeconomics

Microsoft 2.1 Business Structures, 5.7 Common-Size Statements, 12.1 Overview of US Financial Markets, 12.1 Overview of US Financial Markets, 17.3 Calculating the Weighted Average Cost of Capital

Microsoft Suite 1.3 Importance of Data and Technology

Miller 17.4 Capital Structure Choices

mixed stream 9.1 Timing of Cash Flows

MM Proposition I 17.4 Capital Structure Choices

mode 13.1 Measures of Center

modified internal rate of return (MIRR) 16.4 Alternative Methods

Modigliani 17.4 Capital Structure Choices

money market 1.7 Financial Instruments

money market investments 7.4 Applications of TVM in Finance

money market mutual funds (MMMFs) 12.1 Overview of US Financial Markets

money market securities 1.7 Financial Instruments

money supply 7.4 Applications of TVM in Finance

MoneyWeek 10.1 Characteristics of Bonds

Monster Beverage 11.3 Discounted Cash Flow (DCF) Model

Moody’s 12.1 Overview of US Financial Markets

Morgan Stanley 1.5 Markets and Participants

mortgage bond 12.1 Overview of US Financial Markets

mortgage loan 8.3 Loan Amortization

municipal bonds (“munis”) 1.7 Financial Instruments, 10.1 Characteristics of Bonds

municipal bonds (munis) 12.1 Overview of US Financial Markets

mutually exclusive projects 16.5 Choosing between Projects

N

NASDAQ 12.1 Overview of US Financial Markets

National Bureau of Economic Research (NBER) 3.3 Business Cycles and Economic Activity

natural hedge 20.3 Exchange Rates and Risk

Negotiable certificates of deposit (NCDs) 1.7 Financial Instruments, 12.1 Overview of US Financial Markets

Net book value 11.1 Multiple Approaches to Stock Valuation

net debt 17.3 Calculating the Weighted Average Cost of Capital

net income 4.1 Cash versus Accrual Accounting, 5.1 The Income Statement

net present value (NPV) 16.2 Net Present Value (NPV) Method

Net terms 19.2 What Is Trade Credit?

net working capital 19.1 What Is Working Capital?

Netflix 17.5 Optimal Capital Structure

New York 20.3 Exchange Rates and Risk

New York Stock Exchange (NYSE) 12.1 Overview of US Financial Markets

NFLX (Netflix) 15.5 Using Excel to Make Investment Decisions

Nike 1.5 Markets and Participants, 13.6 Data Visualization and Graphical Displays, 14.1 Correlation Analysis

nominal interest rate 3.4 Interest Rates

Non-diversifiable risk 1.1 What Is Finance?

Non-stock corporation 2.1 Business Structures

noncash expenses 5.5 The Statement of Cash Flows

noncurrent assets 5.2 The Balance Sheet

Noncurrent liabilities 5.2 The Balance Sheet

Nonprofit corporation 2.1 Business Structures

NOPAT (net operating profit after taxes) 6.5 Market Value Ratios

normal distribution 13.4 Statistical Distributions

O

Obama 1.6 Microeconomic and Macroeconomic Matters

Occidental Petroleum 10.4 Risks of Interest Rates and Default

operating activities 18.1 The Importance of Forecasting

operating cycle 6.2 Operating Efficiency Ratios, 19.1 What Is Working Capital?

opportunity cost 7.4 Applications of TVM in Finance, 19.2 What Is Trade Credit?

option 20.3 Exchange Rates and Risk

option writer 20.3 Exchange Rates and Risk

Ordering costs 19.5 Inventory Management

ordinary annuity 8.2 Annuities

outliers 13.1 Measures of Center

over-the-counter (OTC) market 12.1 Overview of US Financial Markets

owner’s equity 5.4 The Statement of Owner’s Equity

P

P/E TTM 6.5 Market Value Ratios

Par value 10.1 Characteristics of Bonds

partnership 2.1 Business Structures

payback period 16.1 Payback Period Method

payday advance loan (PAL) 8.4 Stated versus Effective Rates

PayPal 1.1 What Is Finance?

Peloton 1.3 Importance of Data and Technology, 15.1 Risk and Return to an Individual Asset

PepsiCo 2.3 Role of the Board of Directors

percentiles 13.3 Measures of Position

perpetuity 8.1 Perpetuities, 11.2 Dividend Discount Models (DDMs)

Personal financial advisor 1.4 Careers in Finance

Personal lines of credit 8.3 Loan Amortization

Political risk 1.1 What Is Finance?

Ponzi scheme 2.4 Agency Issues: Shareholders and Corporate Boards

population data 13.1 Measures of Center

portfolio 13.5 Probability Distributions, 15.2 Risk and Return to Multiple Assets

pound 20.3 Exchange Rates and Risk

PR Newswire 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

precautionary motive 19.3 Cash Management

precedent transaction analysis (precedents) 11.1 Multiple Approaches to Stock Valuation

prediction 14.2 Linear Regression Analysis

preferred stock 8.1 Perpetuities, 11.4 Preferred Stock, 17.6 Alternative Sources of Funds

premium 20.3 Exchange Rates and Risk

premium bond 10.2 Bond Valuation

present value 9.1 Timing of Cash Flows

present value (PV) 7.2 Time Value of Money (TVM) Basics

press release 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

price-to-book (P/B) ratio 11.1 Multiple Approaches to Stock Valuation

price-to-cash-flow (P/CF) ratio 11.1 Multiple Approaches to Stock Valuation

price-to-earnings (P/E) ratio 11.1 Multiple Approaches to Stock Valuation

price-to-sales (P/S) ratio 11.1 Multiple Approaches to Stock Valuation

price/earnings (P/E) ratio 6.5 Market Value Ratios

primary market 1.5 Markets and Participants, 12.1 Overview of US Financial Markets

prime rate 10.1 Characteristics of Bonds

principal 2.4 Agency Issues: Shareholders and Corporate Boards

pro forma 1.2 The Role of Finance in an Organization, 18.3 Pro Forma Financials

probability distribution 13.5 Probability Distributions

producer price index (PPI) 3.2 Macroeconomics

Professional corporation 2.1 Business Structures

Profit margin 6.6 Profitability Ratios and the DuPont Method

profitability index (PI) 16.4 Alternative Methods

Public benefit corporation 2.1 Business Structures

Public Company Accounting Oversight Board 2.3 Role of the Board of Directors

put option 20.3 Exchange Rates and Risk

Q

quarterly 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

quartiles 13.3 Measures of Position

quick payment 19.2 What Is Trade Credit?

quick ratio 6.3 Liquidity Ratios

R

R 14.6 Use of R Statistical Analysis Tool for Regression Analysis

R statistical analysis tool 13.7 The R Statistical Analysis Tool

rating agencies (bond rating services) 10.4 Risks of Interest Rates and Default

ratios 19.1 What Is Working Capital?

real interest rate 3.4 Interest Rates

real interest rates 7.4 Applications of TVM in Finance

realized return 10.4 Risks of Interest Rates and Default, 15.1 Risk and Return to an Individual Asset

recession 3.3 Business Cycles and Economic Activity

Refund anticipation loans (RALs) 8.4 Stated versus Effective Rates

Regression analysis Why It Matters

Reinvestment risk 10.4 Risks of Interest Rates and Default

Renaissance Capital 12.1 Overview of US Financial Markets

replacement chain approach 16.5 Choosing between Projects

report 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

Republicans 1.6 Microeconomic and Macroeconomic Matters

required rate of return 8.1 Perpetuities

required return 11.2 Dividend Discount Models (DDMs)

residual 14.2 Linear Regression Analysis

retained earnings 5.2 The Balance Sheet

retirement planning 8.2 Annuities

Return on equity 6.6 Profitability Ratios and the DuPont Method

return on total assets 6.6 Profitability Ratios and the DuPont Method

revenue 4.1 Cash versus Accrual Accounting, 5.1 The Income Statement

revenue bonds 12.1 Overview of US Financial Markets

revenue recognition 4.3 How Does a Company Recognize a Sale and an Expense?

Revolving lines of credit (revolvers) 8.3 Loan Amortization

Rigobon 3.2 Macroeconomics

Risk Management Association (RMA) 19.1 What Is Working Capital?

risk premium 15.3 The Capital Asset Pricing Model (CAPM)

risk-free rate 15.3 The Capital Asset Pricing Model (CAPM)

Robinhood 1.5 Markets and Participants

Rome 20.3 Exchange Rates and Risk

S

S corporation 2.1 Business Structures

S&P 500 6.5 Market Value Ratios, 13.5 Probability Distributions, 13.6 Data Visualization and Graphical Displays, 14.1 Correlation Analysis

S&P Global Ratings 12.1 Overview of US Financial Markets

Sam’s Sporting Goods Why It Matters

sample data 13.1 Measures of Center

Sarbanes-Oxley Act (SOX) 2.3 Role of the Board of Directors

Savings bonds 10.1 Characteristics of Bonds

scatter diagram 14.1 Correlation Analysis

scatter plot 13.6 Data Visualization and Graphical Displays, 14.1 Correlation Analysis

scenario analysis 18.5 Forecasting Cash Flow and Assessing the Value of Growth

seasoned equity offering (SEO) 12.1 Overview of US Financial Markets

seasoned equity offerings (SEOs) 1.5 Markets and Participants

Seattle 20.3 Exchange Rates and Risk

secondary market 1.5 Markets and Participants, 12.1 Overview of US Financial Markets

secondary markets Why It Matters

secretaries of state 2.1 Business Structures

secured personal loan 8.3 Loan Amortization

Securities Act of 1933 1.1 What Is Finance?, 2.3 Role of the Board of Directors

Securities and Exchange Commission (SEC) 1.1 What Is Finance?, 1.5 Markets and Participants, 2.3 Role of the Board of Directors, 4.1 Cash versus Accrual Accounting, 5.8 Reporting Financial Activity

Securities Exchange Act of 1934 1.1 What Is Finance?, 2.3 Role of the Board of Directors

Securities Investor Protection Corporation (SIPC) 1.1 What Is Finance?

Sensitivity analysis 18.5 Forecasting Cash Flow and Assessing the Value of Growth

shareholders (stockholders) 2.1 Business Structures

Shark Tank Why It Matters

Sharpe 15.4 Applications in Performance Measurement

Sharpe ratio 15.4 Applications in Performance Measurement, 15.4 Applications in Performance Measurement, 15.4 Applications in Performance Measurement, 15.4 Applications in Performance Measurement

shelf registration 12.1 Overview of US Financial Markets

Siegel 12.2 Historical Picture of Inflation

Simmons 9.1 Timing of Cash Flows

single payment or lump sum 7.3 Methods for Solving Time Value of Money Problems

slope 14.4 Regression Applications in Finance

Sochi, Russia 16.5 Choosing between Projects

sole proprietor 2.1 Business Structures

Solvency 6.4 Solvency Ratios

South Korean 20.3 Exchange Rates and Risk

Southwest Airlines (LUV) 15.1 Risk and Return to an Individual Asset

Spain 20.3 Exchange Rates and Risk

Special purpose acquisition companies (SPACs) 12.1 Overview of US Financial Markets

Speculating 20.1 The Importance of Risk Management

speculative motive 19.3 Cash Management

spot exchange rate 3.5 Foreign Exchange Rates

spot rate 20.3 Exchange Rates and Risk

SPY 15.5 Using Excel to Make Investment Decisions

stacked area graph 3.6 Sources and Characteristics of Economic Data

stakeholder 2.2 Relationship between Shareholders and Company Management

Standard & Poor’s 500 stock market index 14.1 Correlation Analysis

Standard and Poor’s 12.1 Overview of US Financial Markets

standard deviation 13.2 Measures of Spread

Stanley Why It Matters

Starbucks Corporation 20.1 The Importance of Risk Management

State Street Global Advisors 15.5 Using Excel to Make Investment Decisions

statement of cash flows 5.1 The Income Statement, 18.1 The Importance of Forecasting

statement of stockholders’ equity 18.1 The Importance of Forecasting

stock buyback 6.5 Market Value Ratios

Stock corporation 2.1 Business Structures

stock market crash of 1929 1.1 What Is Finance?

stock returns 12.4 Historical Picture of Returns to Stocks

stock value 11.1 Multiple Approaches to Stock Valuation

Stockout costs 19.5 Inventory Management

strike price (exercise price) 20.3 Exchange Rates and Risk

structured settlements 8.2 Annuities

Student loans 8.3 Loan Amortization

subscriber 2.2 Relationship between Shareholders and Company Management

Super Display Book (SDBK) 11.5 Efficient Markets

Supply 3.1 Microeconomics

supply chain 19.5 Inventory Management

supply curve 3.1 Microeconomics

swap 20.4 Interest Rate Risk

Switzerland 3.6 Sources and Characteristics of Economic Data

systematic risk 15.2 Risk and Return to Multiple Assets

T

T-account 4.2 Economic Basis for Accrual Accounting

T-Mobil 10.4 Risks of Interest Rates and Default

tangible asset 4.4 When Should a Company Capitalize or Expense an Item?

Target (TGT) 15.1 Risk and Return to an Individual Asset

Target Corporation 19.3 Cash Management

Tellurian Inc. (TELL) 6.5 Market Value Ratios

Tennessee Energy 10.1 Characteristics of Bonds

Term loans 8.3 Loan Amortization

Term risk 10.4 Risks of Interest Rates and Default

Tesla 17.1 The Concept of Capital Structure

Texas Instruments BAII Plus™ Professional 7.3 Methods for Solving Time Value of Money Problems

The Great Recession of 2007–2009 1.1 What Is Finance?

time series graph 13.6 Data Visualization and Graphical Displays

time value of money (TVM) 7.1 Now versus Later Concepts

times interest earned (TIE) ratio 6.4 Solvency Ratios

Tokyo Olympics 16 Video Activity

Total asset turnover 6.2 Operating Efficiency Ratios

total returns 12.3 Historical Picture of Returns to Bonds

trade credit 19.1 What Is Working Capital?

Trade-off theory 17.5 Optimal Capital Structure

transaction exposure 3.5 Foreign Exchange Rates

Transaction risk 20.3 Exchange Rates and Risk

transactional motive 19.3 Cash Management

translation exposure 3.5 Foreign Exchange Rates

translation risk 20.3 Exchange Rates and Risk

TransUnion 8.3 Loan Amortization

treasurer 1.2 The Role of Finance in an Organization

Treasury bills (T-bills) 1.7 Financial Instruments, 12.1 Overview of US Financial Markets

Treasury bonds 1.7 Financial Instruments, 12.1 Overview of US Financial Markets

Treasury Inflation-Protected Securities, or TIPS 12.1 Overview of US Financial Markets

Treasury investments 7.2 Time Value of Money (TVM) Basics

Treasury notes 1.7 Financial Instruments

Treasury notes (T-notes) 12.1 Overview of US Financial Markets

Treynor ratio 15.4 Applications in Performance Measurement

Trump 1.6 Microeconomic and Macroeconomic Matters

U

underinvested 7.4 Applications of TVM in Finance

unemployed 3.2 Macroeconomics

uninvested 7.4 Applications of TVM in Finance

United Airlines 13.5 Probability Distributions

United States 3.6 Sources and Characteristics of Economic Data

Universal Trading Platform 11.5 Efficient Markets

unlevered equity 17.4 Capital Structure Choices

unsecured personal loan 8.3 Loan Amortization

US Bureau of Economic Analysis 3.2 Macroeconomics

US Department of Labor 3.2 Macroeconomics

US Department of the Treasury 15.3 The Capital Asset Pricing Model (CAPM)

US Securities and Exchange Commission (SEC) 12.1 Overview of US Financial Markets

US Treasury bills (T-bills) 10.1 Characteristics of Bonds

US Treasury bonds 17.3 Calculating the Weighted Average Cost of Capital

US Treasury note rate 10.1 Characteristics of Bonds

US Treasury securities 17.3 Calculating the Weighted Average Cost of Capital

US Treasury Securities 15.3 The Capital Asset Pricing Model (CAPM)

V

Vanguard 12.1 Overview of US Financial Markets

Variance 13.2 Measures of Spread

Venice 20.3 Exchange Rates and Risk

Venmo 1.1 What Is Finance?

vertical integration 20.2 Commodity Price Risk

vice president of finance (VP-F) 1.2 The Role of Finance in an Organization

video conferencing 1.3 Importance of Data and Technology

Vietnamese producers 20.3 Exchange Rates and Risk

VISA 19.3 Cash Management

W

Wall Street 1.1 What Is Finance?

Wall Street Journal (WSJ) 1.6 Microeconomic and Macroeconomic Matters

Walmart 12.1 Overview of US Financial Markets

Walmart Stores Inc. 19.1 What Is Working Capital?

Walt Disney Company 5.4 The Statement of Owner’s Equity

weighted average cost of capital (WACC) 17.1 The Concept of Capital Structure

weighted mean 13.1 Measures of Center

Williams Why It Matters

Wilshire US Small-Cap Index 12.4 Historical Picture of Returns to Stocks

working capital 19.1 What Is Working Capital?

Working capital management 1.1 What Is Finance?

World Bank 3.2 Macroeconomics, 12.1 Overview of US Financial Markets

WorldCom 4.4 When Should a Company Capitalize or Expense an Item?

X

x-axis 13.6 Data Visualization and Graphical Displays

XOM 15.1 Risk and Return to an Individual Asset

Y

y-axis 13.6 Data Visualization and Graphical Displays

Yahoo! Finance 6.5 Market Value Ratios, 15.3 The Capital Asset Pricing Model (CAPM), 17.3 Calculating the Weighted Average Cost of Capital

Yellen 12.2 Historical Picture of Inflation

yield curve 10.3 Using the Yield Curve

Yield to maturity (YTM) 10.1 Characteristics of Bonds

Z

z-score 13.3 Measures of Position

z-value 13.3 Measures of Position

zero-coupon bonds 10.1 Characteristics of Bonds