Examlex
a firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing.
Future Value Factor
A factor used to calculate the future value of a cash flow at a certain rate of interest over a specific number of periods.
Interest Rate
is the percentage of principal charged by the lender for the use of its money or the return earned on deposit accounts.
Present Value
The current value of a future amount of money or stream of cash flows, discounted at a particular interest rate.
Simple Interest
Interest assessed only on the principal sum, or on the part of the principal that still needs to be repaid.
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