Brigham/Ehrhardt's Financial Management: T&P, 13th Ed.

FREQUENTLY USED SYMBOLS

ACP ADR APR

AR b

bL bU BEP BVPS CAPM CCC CF CFPS CR CV

Dps Dt DCF D/E DPS DRIP DRP DSO EAR EBIT EBITDA EPS EVA

F

FCF FVN FVAN

g I I/YR INT IP IPO IRR LP M

M/B MIRR MRP MVA

n N N(di) NOPAT NOWC NPV P

Pc

Average collection period American Depository Receipt Annual percentage rate Accounts receivable Beta coefficient, a measure of an asset's market risk Levered beta Unlevered beta Basic earning power Book value per share Capital Asset Pricing Model Cash conversion cycle Cash flow; CFt is the cash flow in Period t Cash flow per share Conversion ratio Coefficient of variation Difference, or change (uppercase delta) Dividend of preferred stock Dividend in Period t Discounted cash flow Debt-to-equity ratio Dividends per share Dividend reinvestment plan Default risk premium Days sales outstanding Effective annual rate, EFF% Earnings before interest and taxes; net operating income Earnings before interest, taxes, depreciation, and amortization Earnings per share Economic Value Added

(1) Fixed operating costs (2) Flotation cost

Free cash flow Future value for Year N Future value of an annuity for N years Growth rate in earnings, dividends, and stock prices Interest rate; also denoted by r Interest rate key on some calculators Interest payment in dollars Inflation premium Initial public offering Internal rate of return Liquidity premium

(1) Maturity value of a bond (2) Margin (profit margin)

Market-to-book ratio Modified Internal Rate of Return Maturity risk premium Market Value Added Number of shares outstanding Calculator key denoting number of periods Represents area under a standard normal distribution function Net operating profit after taxes Net operating working capital Net present value

(1) Price of a share of stock in Period t; P0 = price of the stock today (2) Sales price per unit of product sold

Conversion price

Pf Ph PN P/E PMT PPP PV PVAN Q QBE

r

?r ^r r* rd re rf rh ri rM rNOM rps

rPER rRF rs

ROA ROE

RP RPM

RR S

SML 2 t T

TVN TIE

V VB VL Vop Vps VU VC

w wd wps ws wce WACC X YTC YTM

Price of good in foreign country Price of good in home country A stock's horizon, or terminal, value Price/earnings ratio Payment of an annuity Purchasing power parity Present value Present value of an annuity for N years Quantity produced or sold Breakeven quantity

(1) A percentage discount rate, or cost of capital; also denoted by i (2) Nominal risk-adjusted required rate of return

"r bar," historic, or realized, rate of return "r hat," an expected rate of return Real risk-free rate of return Before-tax cost of debt Cost of new common stock (outside equity) Interest rate in foreign country Interest rate in home country Required return for an individual firm or security Return for "the market" or for an "average" stock Nominal rate of interest; also denoted by iNOM

(1) Cost of preferred stock (2) Portfolio's return

Periodic rate of return Rate of return on a risk-free security

(1) Required return on common stock (2) Cost of old common stock (inside equity)

Correlation coefficient (lowercase rho); also denoted by R when using historical data Return on assets Return on equity Risk premium Market risk premium Retention rate

(1) Sales (2) Estimated standard deviation for sample data (3) Intrinsic value of stock (i.e., all common equity)

Security Market Line Summation sign (uppercase sigma) Standard deviation (lowercase sigma) Variance Time period Marginal income tax rate A stock's horizon, or terminal, value Times interest earned Variable cost per unit Bond value Total market value of a levered firm Value of operations Value of preferred stock Total market value of an unlevered firm Total variable costs Proportion or weight Weight of debt Weight of preferred stock Weight of common equity raised internally by retaining earnings Weight of common equity raised externally by issuing stock Weighted averaged cost of capital Exercise price of option Yield to call Yield to maturity

Financial Management:

Theory and Practice

THIRTEENTH EDITION MICHAEL C. EHRHARDT

University of Tennessee

EUGENE F. BRIGHAM

University of Florida

Australia ? Brazil ? Japan ? Korea ? Mexico ? Singapore ? Spain ? United Kingdom ? United States

Financial Management: Theory and Practice, Thirteen Edition

Michael C. Ehrhardt and Eugene F. Brigham

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