Flashcards
Chapter 9
Flashcards do conjunto (28)
- 1Amortization scheduleProvides a summary of the cash interest payments, interest expense, and changes in carrying value for debt in instruments
- 2AnnuityCash payments of equal amounts over equal time periods
- 3BondA formal debt instrument that obligates the borrower to repay a stated amount, referred to as a principal or face amount, at a specified maturity date
- 4CallableA bond feature that allows the borrower to repay the bonds before their scheduled maturity date at a specified call price
- 5Capital leaseContract in which the lessee essentially buys an asset and borrows the money through a lease to pay for the asset
- 6Capital structureThe mixture of liabilities and stockholders equity in business
- 7Carrying valueThe balance in the bonds payable account, which equals the face value of bonds payable minus the discount or the face value plies the premium
- 8ConvertibleA bond feature that allows the lender (or investor) to convert each bond into a specified number of shares of common stock
- 9Debt financingBorrowing money from creditors
- 10Debt to equity ratioTotal liabilities divided by total stockholders equity; measures a company's risk
- 11Default riskThe risk that a company will be unable to pay the bonds face amount or interest payments as it becomes due
- 12DiscountA bonds issue price is below the face amount
- 13Early extinguishment of debtThe issuer retires debt before its scheduled maturity date
- 14Equity financingObtaining investment from stockholders
- 15Installment paymentIncludes both an amount that represents interest and an amount that represents a reduction of the outstanding balance
- 16LeaseA contractual arrangement by which the lessor (owner) provides the lessee (user) the right to use an asset for a specified period of time
- 17Market interest rateRepresents the true interest rate used by investors to value a bond
- 18Operating leaseContract in which the lessor owns the asset and the lessee uses the asset temporarily
- 19PremiumA bonds issue price is above the face amount
- 20Private placementDale of debt securities directly to a single investor
- 21Return on assetsNet income divided by average total assets; measures the amount of net income generated for each dollar invested in assets
- 22Secured bondsBonds that are supported by specific assets pledged as collateral
- 23Serial bondsBonds that require payment of the principal amount of the bond over a series of maturity dates
- 24Sinking fundAn investment fund used to set aside money to be used to pay debts as they come due
- 25Stated interest rateThe rate quoted in the bond contract used to calculate the cash payments for interest
- 26Term bondsBonds that require payment of the full principal amount at the end of the loan term
- 27Times internet earned ratioRatios that compared interest expense with income available to pay those chargers
- 28Unsecured bondsBonds that are not supported by specific assets pledged as collateral
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- FlashCards sobre Chapter 9, criado por Zak Marchetti em 13-04-2017.
- Criado por
- Zak Marchetti
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