Capitalization rate

 

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Capitalization rate

The rate of interest used to calculate the present value of a number of future payments.



Capitalization rate

Similar Matches

Capitalization ratios

Capitalization ratios

Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.


Overcapitalization

Overcapitalization

Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.


Leveraged recapitalization

Leveraged recapitalization

Often used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub.


Capitalization table

Capitalization table

A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source - long-term debt and common equity - and the respective capitalization ratios.


Capitalization Weighted Index

Capitalization Weighted Index

A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heavist weighting in the index. See also Float, Divisor.


Further Suggestions

Capitalization method
Total capitalization
Recapitalization proposal
Small capitalization (small cap) fund
Small capitalization (small cap) stocks
Nasdaq small capitalization companies


 
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