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Discount period |
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Discount periodThe period during which a customer can deduct the discount from the net amount of the bill when making payment.Discount periodThe time at the beginning of a mortgage life span when you are offered reduced repayments. Can be useful to help you overcome the often significant outlay involved with buying a property.Discount period Similar MatchesDiscounted payback period ruleDiscounted payback period ruleAn investment decision rule in which cash flows are discounted at an interest rate and one determines how long it takes for the sum of the discounted cash flows to equal the initial investment. RediscountRediscountTo discount short-term negotiable debt instruments for a second time, after they have been discounted with a bank. Dividend discount modelDividend discount modelA way of valuing a share based on the net present value of the dividends that you expect to receive in the future.The simplest version of the model assumes that the company's dividend rate remains constant. The 'fair' price of the share is the dividend (in pennies per share) divided by the required rate of return. So if you want 10% a year from your shares, the value of a company paying a 7p dividend is 70p. If you think a return of 8% is satisfactory, the value of the same share is 87.5p.A more complex model assumes that the dividends of the company grow at a consistent rate. The fair price to pay is the next dividend divided by the required rate of return minus the rate at which dividends are expected to grow. So if the 7p dividend is expected to grow at 5% per year, an investor requiring an 12% return would value the shares at (7p x 1.05) divided by (0.12 - 0.05)= (7.35p) divided by (0.07)= 105p DiscountDiscount1. Any reduction in price or value, especially when below a stated or normal price. 2. To buy or sell commercial paper at a price below face value to account for interest to accrue before maturity. Discounted in or by marketDiscounted in or by marketUnannounced information that is widely accepted or anticipated, and hence is already taken into account in the pricing of the security/ market (e.g., poor earnings). Further Suggestionsdeep discountDiscount window discount Documented discount notes Discounting Discount rate Volume discount discounted rate mortgage Discount yield Discounted dividend model (DDM) Pure discount bond Average discount rate Risk adjusted discount rate Discounted cash flow (DCF) Original issue discount debt (OID debt) Dividend Discount Return Discounted payback Straight Discount Discount factor discounted cashflow Discount broker Original Issue Discount securities (OIDS) Accrued market discount Deep discount bond Discount Interest |
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