|
Discounted basis |
|
|
|
Home Site Map Add Term Search About Us Contributors |
Discounted basisTo sell below maturity value, so that the difference makes up all or part of the interest.Discounted basis Similar MatchesDiscounted cashflowDiscounted cashflowA formula closely related to Net Present Value which springs from the idea that £1 received in ten years' time is not worth as much as £1 received now because the £1 received now could be invested for those ten years and compound into a higher value.Discounted cashflow applies a discount rate to future cashflows to establish their present worth. Added to the company's terminal value (i.e. what you'd get if you sold its assets), this gives you a total value for the whole business. Discounted rate mortgageDiscounted rate mortgageA mortgage which guarantees the interest rate charged will remain a set number of percentage points below the lender's standard variable rate. The rate changes as base rate moves up and down, but the relationship between base rate and the rate you pay remains constant. Discounted paybackDiscounted paybackThe length of time needed to recoup the present value of an investment. Discounted dividend model (DDM)Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. Discounted cash flow (DCF)Discounted cash flow (DCF)Future cash flows multiplied by discount factors to obtain present values. Further SuggestionsDiscounted payback period ruleDiscounted in or by market |
|
|
|