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Capitalization rate (or " cap rate ") is a real estate valuation measure used to compare different real estate investments. Although there are many variations, the cap rate is generally calculated as the ratio between the annual rental income produced by a real estate asset to its current market value. Most variations depend on the definition ...
Terminal value (finance) In finance, the terminal value (also known as “ continuing value ” or “ horizon value ” or " TV ") [1] of a security is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. [2] It is most often used in multi-stage discounted cash flow analysis, and ...
Exit rate as a term used in web site traffic analysis (sometimes confused with bounce rate) is the percentage of visitors to a page on the website from which they exit the website to a different website. The visitors just exited from that specific page. Exit rate as an Upstream (petroleum industry) term refers to the rate of production of oil ...
This formula is similar to the market capitalization formula used to express the value of public companies. Example 1 [ edit ] If a company is worth $100 million (pre-money) and an investor makes an investment of $25 million, the new, post-money valuation of the company will be $125 million.
Interest rate cap and floor. In finance, an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%.
Minimum acceptable rate of return. In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk ...
Rate-of-return regulation is a system for setting the prices charged by government-regulated monopolies, such as public utilities. It attempts to set prices at efficient (non-monopolistic, competitive) levels [1] equal to the efficient costs of production, plus a government-permitted rate of return on capital. [2]
Pre-money valuation. "Pre-money valuation" is a term widely used in the private equity and venture capital industries. It refers to the valuation of a company or asset prior to an investment or financing. [1] If an investment adds cash to a company, the company will have a valuation after the investment that is equal to the pre-money valuation ...