 # Factor space Home  Site Map  Add Term  Search  About Us  Contributors # Factor space

A graph in which the axes measure quantities of factors.

# Earnings factor

Earnings factor

This is a theoretical earnings figure that is used for working out state pensions or guaranteed minimum pensions.

# Present value factor

Present value factor

Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].

# Common factor

Common factor

An element of return that influences many assets. According to multiple factor risk models, the common factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices.

# Factoring

Factoring

A company which is owed money by trade debtors faces the risk of slow payment or default on those debts, which can put strain on its cash flow. One of the ways it can mitigate this danger is by 'factoring' them.Special companies exist (factors) which will pay the company a high proportion of the amount it is owed, in return for the right to collect the debts from the debtors. The company gets a high percentage of the amount it is owed direct from the factor. The factors chase the money and keep the difference.

# Factor cost

Factor cost

The cost of the factors used in production. The term is used especially when the value of economic activity in a sector or an economy can be measured or valued either at "factor cost," adding up payments to factors, or at "market value," adding up revenues from goods sold.

# Further Suggestions

Factor proportions
Factor portfolio
International factor movement
Factor Price Equalization Theorem
Factor analysis
Total factor productivity
Factor-price space
Factor movement
Factor mobility
Direct factor content
Reported factor
Risk factor
One factor APT
V Vacancy Factor
Factor content
Abundant factor
Factor intensity uniformity
Factor intensity reversal
Factor augmenting
price earnings growth factor
Factor-using
Scarce factor
Factor of production
Factor accumulation