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The Term "Cash Build" as Used in Chapter 5 Is

question 57

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The term "cash build" as used in Chapter 5 is equal to net sales minus the change in receivables.


Definitions:

Required Return

Required return is the minimum expected yield by investors to compensate for the risk of an investment.

Semiannual Compounding

Interest calculation method where interest is added to the principal sum of a loan or deposit twice a year.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date.

Zero-Coupon Bonds

Debt securities that are sold at a deep discount and do not pay periodic interest payments, but instead are redeemed at their face value at maturity.

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