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____________Float Results from the Lapse Between the Time When a Firm

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____________float results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account.


Definitions:

Investment Project

A project undertaken by an individual or company involving an investment of resources aimed at generating financial returns.

Cost Of Capital

The rate of return that a business must achieve to generate value for its investors, essentially the cost of raising funds through debt or equity.

Dividend Growth Model

A method for determining the value of a stock by using predicted dividends and discounting them back to their present value.

Cost Of Equity

The return that equity investors require on their investment in the firm.

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