 Fundamentals of Corporate Finance, 4/e Stephen A. Ross,
Massachusetts Institute of Technology Randolph W. Westerfield,
University of Southern California Bradford D. Jordan,
University of Kentucky Gordon S. Roberts,
York University
Discounted Cash Flow Valuation
Key TermsBelow are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
Annual Percentage Rate (APR)  The interest rate charged per period multiplied by the number of periods per year.
(See Refer to page 172)
    Annuity  A level stream of cash flows for a fixed period of time.
(See Refer to page 157)
    Annuity Due  Annuity contract specification of payments at the beginning of each period.
(See Refer to page 163)
    Consol  A perpetual bond.
(See Refer to page 164)
    Effective Annual Rate (EAR)  The interest rate expressed as if it were compounded once per year.
(See Refer to page 169)
    Growing Annuity  A finite number of growing annual cash flows.
(See Refer to page 167)
    Growing Perpetuity  A constant stream of cash flows without end that is expected to rise indefinitely.
(See Refer to page 166)
    Perpetuity  An annuity in which the cash flows continue forever.
(See Refer to page 164)
    Stated or Quoted Interest Rate  The interest rate expressed in terms of the interest payment made each period. Also quoted interest rate.
(See Refer to page 169)

