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  • Cyclical industries31 Dividend discount Model (DDM)

    1

    Defensive industries32 Perpetuity2" # Growth industries33$ %& '( ) )*+Price to book value3

    '-.) /Industry Life cycle34% '( ) )*+Price/sales Ratio (PSR)

    4

    12( 3+ '( 4# Interest-sensitiveIndustries

    355 %& %Present Value Approach

    5

    ( '*7 +$ 8$Standard industrial classification (SIC) system

    369$ : 9Unsystematic Risk6

    &( < 1Market Data37$ Yield7(> ? +Point-and-figure

    Chart38@ABVolatility8

    *+ DRelative Strength39EB FVariability98$ : E@ 'Indirect Investing40A 1&(Total return (TR)10

    E@ ' )A"Investment company41I#

  • 1 Two Period Model91A &( '>Efficient Market Hypothesis (EMH)

    61

    '+@. " 3+ The Multiple Growth Model

    92^$+ 1&(Expected return62

    _ %&Intrinsic Value (IV)93 < Financial assets63&( O ) Current Market Price

    (CMP)94E@ ' [Institutional

    investors64

    < '( ) Y>82P/E Ratio 95E@ 'Investment65J$*< Y>Correlation Coefficient962 - $-Calls66

    ]+ACovariance 97' &(Capital Market67' &( WCapital Market Theory981`

  • 2 1&(Dividend Yield151$ % )*+Short Interest ratio161&$ 2Preferred stock131

    ) TB kdSupport Level1622 % $-Puts132e 5\ 'ReTechnical Analysis163'+- KTreasury bill133$A" '> KCorporate bonds164'+- '> KTreasury bond134

    2 D*# 2( Kequity securities165- $- KWarrant 135)(b ( 2( KFixed-income

    securities1662. &(Fourth Market136

    V < DBFutures contracts1672( K ' '>/Initial public offering (IPO)

    137

    Z\+Standard deviation168' Tm 'Investment Banker1389$ 9Systematic risk169&( 8$5NasdaqNasdaq/NMS139

    '5 $- '@( ) Premium 170+& '+. ( $* &(Negotiated Market1402 % $-Put 171*$/ P#Margin account141

    9-d-Risk172*$/Margin142*+ 1&(Return relative173 ) '( %?TLimit order143

    '$ h\ 1&(Realized Return174/ @AFull-service broker1445 %&Present value175< TJ+Geometric mean145

    3+ h7 & '5 $- '@(12(

    Interest rate options176 R E@ ' o7

    Dividend Reinvestment plan

    146

    4 ( '5 $- l(2 N-"

    Stock-index options177% - $- 2

    Put-Call parity147

    L+ 2 4( D&New York stock Exchange (NYSE)

    178' ( E@ ' < )A"&(

    Open-end Investment company

    148

    4( & I- &(Over-the-counter (OTC) Market

    179e+ N-"-+ONikkei-Dow jones Average

    149

    2( K c- '>/Private placement 180' &(Primary Market150

  • '( 'd+Break-Even Point211B < P#$-Accounts Payable181R 9Business Risk212+V )*+Acid test Ratio182

    - $- KCall Options213-)95(Acquisition183+- $-Call Provision214) < )*+Activity Ratios184' )?ACapital Adequacy215 ( Adjustable Dividends185

    E@ ) '

    Capital Asset Pricing Model (CAPM)

    216&$ 2 1" Adjustable Rate of Preferred Stock

    186

    ' ( 'O(Capital Budgeting217@+ < 'Book Weight208

    / 2Common Stock239qborrowing2091++*OCompensating Balance240%( 'd+Break Point210

  • KConvertible Bond251 Dividend282* ( &$ 2Convertible Preferred

    Stock252

    " Dividend Growth Model

    283* ( 2( KConvertible Securities

    253

    '^+ 7* (Dividend IrrelevanceTheory

    284J$*

  • J+ EB Zd+Flexibility and Liquidity

    331 ) )1" /(Exercise Price (Striking Price)

    301

    M$+ < ' KGovernmental Bond345Z$ %&)'+?c(Fair Value315

    N- Gross Profit346 Finance316N-+ Gross Profit (Income)347 < 'Historical Weight349 [/g7Financial Information

    319

    a 5\ 'RHorizontal Analysis350 [Financial Institutions

    320

    ^$+ 1&( 3+Hurdle Rate351

  • &( %&Market Value391'^+/g7 ]+R /Information Asymmetry Theory

    361

    &( Y>Market Weight392' / '>/Initial Public Offering (IPO)

    362

    % ( 2( KMarketable Securities393 ' DE@ 'Institutional Investors

    363

    : hd U$(VhdMatched and Unmatched Arbitrage

    3942M+ < Intangible Assets364

    Maturity3955- TmInternal Financing365X5: E@ ) Miss-Pricing3965- (Internal Resources366

    '+ '^+Moderate Theory397- 1&( 3+5Internal Rate of Return (IRR)

    367

    N- 5/ '^+Net Operating Income Theory

    398uA OInventory368

    B &(Money Market399uA O %@Inventory Turnover369*5 'b "Negative Pledge

    Clause400EB 'Investee370

    N- '^+Net Income (NI) Theory

    401E@ 'Investment371

    5/ '^+Net Operating Income (NOI) Theory

    402E@ ' 9+(Investment Bank372

    5 + [^+Modigliani and Miller Propositions (I&II)

    403' < ) OE@Investment Opportunities Schedule (IOS)

    373

    N- 5 %&Net Present Value (NPV)

    404E@ 'Investor374

    N- Net Profit (Income)4057* ( '^+Irrelevance Proposition

    375

    12(Nominal Interest406

  • VProfitability4511" M$ 2Outstanding Shares421V N-"Profitability Index452) & j( E@ %&Overvalue422

    V < )*+Profitability Ratios453Te h#Owners Equity423'+Prospectus 4542 ZPaid in Capital in

    Excess of Par424

    1+Proxy455 %&Par Value425$A'Proxy Statement456%&)(( ) (Parity Value (Price)426

    % $- KPut Options457Ma( 5\Partial Equilibrium Analysis

    427

    % $-Put Provision458$AM &$ 2Participating Preferred Stock

    428

    )*+)+V(Quick Ratio459)M@&( 1Payback Period4291&( 3+Rate of Return460)-B rPayment Date430

    ( '* [Rating Institutions (Agencies)

    461+ 8 )*+Payout Ratio431

    $ < P# %@Receivable Turnover462Y '^+

  • Z< Y>Target Weight5119)17a(Risk481[Tax 5129 D( 1&( 3+Risk Free rate482

    kO '^+Tax Preference Theory5139 ZRisk Premium483 `Tax Shield514%Sale484

    )> [F [Statement of Change in Financial Position

    515& % < '

  • %@ 'Working Capital547/ 5\Vertical Analysis5411&(Yield548D@+ h7 & yVoting by Proxies542

    1&( \Yield Curve5492 - h#Warrant543 1&(Yield to Maturity550' '< D& TJ+Weighted Average

    Cost of Capital (WACC)

    544

    TBA D( '> KZero Coupon Bond551' 2+ D& '