Glossário de Finanças Corporativas

8/20/2019 Glossário de Finanças Corporativas

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Financial ManagementGlossário Inglês – Português

AAccounting Beta Method / Método do Beta Contábil

A method of estimating a project's beta by running a regression of the company's return on assetsagainst the average return on assets for a large sample of firms.

Accounting Profit / Lucro Contábil A firm's net income as reported on its income statement.

Accounts Payable / Contas a Pagar

A balance owed to suppliers.Accounts Receivable / Contas a Receber

A balance due from a customer.Accruals / Diferidos

Continually recurring short-term liabilities, especially accrued wages and accrued taxes.Acquiring Company / Empresa Compradora

A company that seeks to acquire another firm.

Actual (Realized) Rate of Return ( S k ) / Taxa de Retorno Real (Realizado)

The rate of return on a common stock actually received by stockholders. S k may be greater or less

that and/or k S k ̂ s.

Add-On Interest / Juros Adicionados Interest that is calculated and added to funds received to determine the face amount of aninstallment loan.

Additional Funds Needed (AFN) / Fundos Adicionais Necessários Funds that a firm must raise externally through borrowing or by selling new common or preferred

stock.Adjustable Rate Preferred Stocks (ARPs) / Ações Preferenciais de Taxa AjustávelPreferred stocks whose dividends are tied to the rate on Treasury securities.

After-tax Cost of Debt / Custo da Dívida Após Impostos The relevant cost of new debt, taking into account the tax deductibility of interest, i.e. k d (1-T);used to calculate the WACC.

Agent / Agente Individual or organization hired by other individuals, so-called principals, to perform someservice.

Agency Problem / Problema de Agência A potential conflict of interest between the agent (manager) and (1) the outside stockholders or (2)the creditors (debtholders).

Aging Schedule / Cronograma de Contas a Receber A report showing how long accounts receivable have been outstanding.

Amortization / Amortização Annual charge against income that reflects the cost paid for intangible assets such as copyright,goodwill, patents, and trademarks.

Amortization Schedule / Cronograma de Amortização

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A table showing precisely how a loan will be repaid. It gives the required payment on each payment date and a breakdown of the payment, showing how much is interest and how much isrepayment of principal.

Amortized Loan / Empréstimo Amortizado A loan that is repaid in equal payments over its life.

Annual Compounding / Capitalização Anual

The arithmetic process of determining the final value of a cash flow or series of cash flows wheninterest is added to the principal once a year.Annual Percentage Rate (APR) / Taxa Percentual Anual

A rate reported by banks and other lenders on loans when the effective rate exceeds the nominalrate of interest. The periodic rate X the number of periods per year.

Annual Report / Relatório Anual A report issued annually by a corporation to its stockholders. It contains basic financialstatements, as well as management's opinion of the past year's operations and the firm's future prospects.

Annuity / Anuidade A series of payments of an equal amount at fixed intervals for a specified number of periods.

Annuity Due / Anuidade Devida An annuity whose payments occur at the beginning of each period.Arbitrage / Arbitragem

The simultaneous buying and selling of the same commodity or security in two different marketsat different prices, and pocketing a risk-free return.

Arrearages / Atrasados Unpaid preferred dividends.

Ask(ed) Price / Preço de Venda The price asked by a counterpart to sell a certain asset or security such as stocks or currencies.

Asset Account / Conta do Ativo Any of the accounts stated on the left-hand side of the Balance Sheet.

Asset Management Ratios / Índices de Administração de Ativos A set of ratios which measure how effectively a firm is managing its assets.

Asymmetric Information / Informação Assimétrica The situation in which managers have different (better) information about firms' prospects than doinvestors.

Average Tax Rate / Taxa Média de Imposto Taxes paid divided by taxable income.

BBalance Sheet / Balanço Patrimonial

A statement of the firm's financial position at a specific point in time.

Base Case / Caso Base An analysis in which all of the input variables are set at their most likely values.

Base-Case NPV / Valor Presente Líquido do Caso Base The NPV when sales and other input variables are set equal to their most likely (or base-case)values.

Basic Earning Power (BEP) Ratio / Índice da Capacidade Básica de Geração de Lucros This ratio indicates the ability of the firm's assets to generate operating income; calculated bydividing EBIT by total assets.

Benchmarking / “Comparação”

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The process of comparing a particular company with a group of "benchmark" companies.Best-Case Scenario / Cenário Ideal

An analysis in which all of the input variables are set at their best reasonably forecasted values.Beta Coefficient (b) / Coeficiente Beta

A measure of the extent to which the returns on a given stock move with the stock market.Bid Price / Preço de Compra

The price at which a counterpart will buy a certain asset or security such as stocks or currencies.(Bid-Ask) Spread / Margem de Lucro The difference between the bid and ask prices.

Bird-in-the-Hand Theory / Teoria da Ave na Mão Modigliani-Miller's name for the theory that a firm's value will be maximized by setting a highdividend payout ratio.

Bond / Bônus A long-term debt instrument.

Book Value / Valor Contábil (de Livro) The accounting value of any asset or share as stated on the Balance Sheet.

Bottom Line / “Última Linha”

The name given to the last line of the Income Statement, which is the Earnings per Share (EPS).Bracket Creep / Movimento das Faixas de Tributação A situation that occurs when progressive tax rates combine with inflation to cause a greater portion of each taxpayer's real income to be paid as taxes.

Break Point (BP) / Ponto de Quebra The dollar value of new capital that can be raised before an increase in the firm's weighted averagecost of capital occurs.

Breakeven Point / Ponto de Equilíbrio The volume of sales at which total costs equal total revenues, causing operating profits (or EBIT)to equal zero.

Breakup Value / Valor de Desmembramento A firm's value if its assets are sold off in pieces.

Business Ethics / Ética Empresarial A company's attitude and conduct toward its employees, customers, community, and stockholders

Business Risk / Risco do Negócio The risk associated with projections of a firm's future returns on assets.

CCall Option / Opção de Compra

An option to buy, or "call," a share of stock at a certain price within a specified period.Call Provision / Cláusula de Liquidação Antecipada

A provision in a bond contract that gives the issuer the right to redeem the bonds under specified

terms prior to the normal maturity date.Cannibalization / Canibalização

Occurs when the introduction of a new product causes sales of existing products to decline.Capital Asset Pricing Model (CAPM) / Modelo de Precificação de Ativos de Capital

A model based on the proposition that any stock's required rate of return is equal to the risk-freerate of return plus a risk premium which reflects only the risk remaining after diversification.

Capital Budgeting / Orçamento de CapitalThe process of planning expenditures on assets whose cash flows are expected to extend beyondone year.

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Capital Component / Componente de Capital One of the types of capital used by firms to raise money.

Capital Gain (or Loss) / Ganho (ou Perda) de Capital The profit (loss) from the sale of a capital asset for more (less) than its purchase price.

Capital Gains Yield / Rentabilidade de Ganhos de Capital The capital gain during a given year divided by the beginning price.

Capital Intensity Ratio / Índice de Intensidade de Capital The amount of assets required per dollar of sales (A*/So).Capital Markets / Mercados de Capitais

The financial markets for stocks and for long-term debt (one year or longer).Capital Rationing / Racionamento de Capital

A situation in which a constraint is placed on the total size of the firm's capital budget.Cash Budget / Orçamento de Caixa

A table showing cash flows (receipts, disbursements, and cash balances) for a firm over aspecified period.

Cash Discount / Desconto para Pagamento à Vista A reduction in the price of goods given to encourage early payment.

Cash Flow (CF) / Fluxo de Caixa This term designates uneven inflows and outflows of cash.Certified Public Accountant (CPA) / Contador Público Certificado

An expert in accounting who is officially authorized to prepare financial statements.Change in Net Working Capital / Mudança no Capital de Giro Líquido

The increased current assets resulting from a new project minus the spontaneous increase inaccounts payable and accruals.

Check Clearing / Compensação de Cheque The process of converting a check that has been written and mailed into cash in the payee'saccount.

Check Kiting Scheme / Esquema de Cheques sem Fundo The use of bad checks to get credit or money.

Checking Account / Conta Corrente A bank account against which the depositor can draw checks.

Chief Financial Officer (CFO) / Vice-Presidente de Finanças Executive in charge of the finance department in a company.

Claim / Reinvidicação A demand for something due or believed to be due.

Classified Stock / Ação Classificada Common stock that is given a special designation, such as Class A, Class B, and so forth, to meetspecial needs of the company.

Clientele Effect / Efeito Clientela The tendency of a firm to attract a set of investors who like its dividend policy.

Closely Held Corporation / Empresa de Capital Fechado A corporation that is owned by a few individuals who are typically associated with the firm'smanagement.

Coefficient of Variation (CV) / Coeficiente de Variação Standardized measure of the risk per unit of return; calculated as the standard deviation divided bythe expected return.

Collection Policy / Política de Cobrança The procedures that a firm follows to collect accounts receivable.

Collections Float / Saldo de Cobrança

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The amount of checks that we have received but which have not yet been credited to our account.Commercial Paper / “Papel Comercial”

Unsecured, short-term promissory notes of large firms, usually issued in denominations of$100,000 or more and having an interest rate somewhat below the prime rate.

Commodity Futures / Futuros de “Produtos Comuns”A contract that is used to hedge against price changed for input materials.

Common Size Analysis / Análise de Participação Padrão A comparative analysis technique in which all income statement items are shown as a percentageof sales and all balance sheet items are shown as a percentage of total assets.

Common Stockholders' Equity (Net Worth) / Patrimônio Líquido dos Acionistas OrdináriosThe capital supplied by common stockholder-capital stock, paid-in capital, retained earnings and,occasionally, certain reserves. Total equity is common equity plus preferred stock.

Compensating Balance / Saldo CompensatórioA bank balance that a firm must maintain to compensate the bank for services rendered or forgranting a loan.

Compensating Balance / Saldo CompensatórioA minimum checking account balance that a firm must maintain with a commercial bank,

generally equal to 10 to 20 percent of the amount of loan outstanding.Compounding / CapitalizaçãoThe arithmetic process of determining the final value of a cash flow or series of cash flows whencompound interest is applied.

Computerized Inventory Control System / Sistema de Controle de Estoques ComputadorizadoA system of inventory control in which a computer is used to determine reorder points and toadjust inventory balances.

Congeneric Merger / Fusão Congênita A merger of firms in the same general industry, but for which no customer or supplier relationshipexists.

Conglomerate Merger / Fusão de Conglomerados A merger of companies in totally different industries.

Consol / Bônus Perpétuo A perpetual bond issued by the British government to consolidate past debts; in general, any perpetual bond.

Constant Growth Model / Modelo de Crescimento Constante Also called the Gordon Model, it is used to find the value of a constant growth stock.

Constant Ratio Method / Método do Índice Constante A method of forecasting future financial statements, and future financial requirements, thatassumes certain financial ratios will remain constant.

Continuous Compounding / Capitalização Contínua A situation in which interest is added continuously rather than at discrete points in time.

Conversion Price (Pc) / Preço de Conversão The effective price paid for common stock obtained by converting a convertible security.

Conversion Ratio (CR) / Índice de Conversão The number of shares of common stock that are obtained by converting a convertible bond orshare of convertible preferred stock.

Conversion Value (Ct) / Valor de Conversão The value of common stock obtained by converting a convertible security.

Convertible Bond / Bônus Conversível A bond that is exchangeable, at the option of the holder, for common stock of the issuing firm.

Convertible Currency / Moeda Conversível

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A currency that may be readily exchanged for other currencies.Convertible Security / Título Conversível

A security, usually a bond or preferred stock, that is exchangeable at the option of the holder forthe common stock of the issuing firm.

Copyright / Direito de CópiaThe exclusive legal right to reproduce, publish, and sell the matter and form as of a literary,

musical, or artistic work.Corporate Bonds / Bônus Corporativos Bonds issued by corporations.

Corporate, or Strategic, Alliance / Alianças Corporativas ou Estratégicas A cooperative deal that stops short of a merger

Corporate, or Within-Firm, Risk / Risco Corporativo (ou Interno) Risk not considering the effects of stockholders' diversification; it is measured by a project's effecton uncertainty about the firm's future earnings.

Corporation / Empresa A legal entity created by a state, separate and distinct from its owners and managers, havingunlimited life, easy transferability of ownership, and limited liability.

Correlation / Correlação The tendency of two variables to move together.Correlation Coefficient / Coeficiente de Correlação

A measure of the degree of relationship between two variables.Cost of New Common Equity (ke) / Custo de Capital Ordinário Novo

The cost of external equity; based on the cost of retained earnings, but increased for flotationcosts.

Cost of Preferred Stock (kps) / Custo de Ações Preferenciais The rate of return investors require on the firm's preferred stock, k ps, is calculated as the preferreddividend, D ps, divided by the net issuing price, Pn.

Cost of Retained Earnings, ks / Custo de Lucros Retidos The rate of return required by stockholders on a firm's common stock.

Costly Trade Credit / Crédito de Comércio Custoso Credit taken in excess of free trade credit, whose cost is equal to the discount lost.

Country Risk / Risco País The risk that arises from investing or doing business in a particular country.

(Coupon) Interest Rate / Taxa de Juros (do Cupom) The stated annual rate of interest on a bond.

Coupon Payment / Pagamento do Cupom The specified number of dollars of interest paid each period, generally each six months.

Credit Period / Período do Crédito The length of time for which credit is granted.

Credit Policy / Política de Crédito A set of decisions that include a firm's credit period, credit standards, collection procedures, anddiscounts offered.

Credit Standards / Padrões de Crédito Standards that stipulate the required financial strength that an applicant must demonstrate to begranted credit.

Credit Terms / Condições do Crédito A statement of the credit period and any discounts offered--for example, 2/10, net 30.

Credit Union / Associação de Crédito A cooperative association that makes small loans to its members at low interest rates.

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Creditworthiness / Capacidade de Crédito State of individuals and business firms that are accepted as safe to give credit to, because they arereliable in making repayment.

Crossover Rate / Taxa de Intersecção The discount rate at which the NPV profiles of two projects cross and, thus, at which the projects' NPV's are equal.

Cumulative / Cumulativo A protective features on preferred dividends previously not paid to be paid before any commondividends can be paid.

Current Ratio / Índice de Liquidez Corrente This ratio is calculated by dividing current assets by current liabilities. It indicates the extent towhich current liabilities are covered by those assets expected to be converted to cash in the nearfuture.

Current Yield / Rentabilidade Corrente The annual interest payment on a bond divided by the bond's current price.

DDays Sales Outstanding (DSO) / Dias para Receber pelas Vendas

The average length of time required to collect credit sales. In other terms, it’s the ratio calculated by dividing accounts receivable by average sales per day; indicates the average length of time thefirm must wait after making a sale before receiving cash.

Debenture / Debênture A long-term bond that is not secured by a mortgage on specific property.

Debt / Dívida Something owed, especially money.

Declaration Date / Data de Declaração The date on which a firm's directors issue a statement declaring a dividend.

Default Risk Premium (DRP) / Prêmio de Risco de Inadimplência

The difference between the interest rate on a U. S. Treasury bond and a corporate bond of equalmaturity and marketability.

Defensive Merger / Fusão Defensiva A merger designed to make a company less vulnerable to takeover.

Depreciation / DepreciaçãoThe charge for assets used in production. Depreciation is not a cash outlay.

Derivatives (Derivative Securities) / Derivativos Securities whose values are determined by the market price or interest rate of some other asset.

Detachable Warrant / Opção de Compra Destacável A warrant that can be detached from a bond and traded independently of it

Devaluation / Desvalorização

The process of officially reducing the value of a country's currency relative to other currencies.Disbursement Float / Saldo de Desembolso

The value of the checks which we have written but which are still being processed and thus havenot been deducted from our account balance by the bank.

Discount Bond / Bônus Vendido a Desconto A bond that sells below its par value; occurs whenever the going rate of interest rises above thecoupon rate.

Discount Interest / Juros de Desconto Interest that is calculated on the face amount of a loan but is paid in advance.

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Discount on Forward Rate / Desconto sobre a Taxa Antecipada The situation when the spot rate is less than the forward rate.

Discounted Payback Period / Período de Retorno do Capital Descontado The length of time required for an investment's cash flows, discounted at the investment's cost ofcapital, to cover its cost.

Discounting / Desconto

The process of finding the present value of a cash flow or a series of cash flows; discounting is thereverse of compounding.Diversifiable Risk / Risco Diversificável

That part of a security's risk associated with random events; it can be eliminated by properdiversification.

Divestiture / Desinvestimento The sale of some of a company's operating assets.

Dividend Irrelevance Theory / Teoria da Irrelevância dos Dividendos The theory that a firm's dividend policy has no effect on either its value or its cost of capital.

Dividend Policy Decision / Decisão da Política de Dividendos The decision as to how much of current earnings to pay out as dividends rather than to retain for

reinvestment in the firm.Dividend Reinvestment Plan (DRP) / Plano de Investimento dos Dividendos A plan that enables a stockholder to automatically reinvest dividends received back into the stockof the paying firm.

Dividend Yield / Rentabilidade dos Dividendos The expected dividend divided by the current price of a share of stock.

Dow Jones Industrial Average (DJIA) / Índice de Ações de Empresas Industriais Dow Jones A benchmark stock index made up of 30 leading industrial companies’ stocks that are widely held by individual and institutional investors.

Du Pont Chart / Gráfico Du Pont A chart designed to show the relationships among return on investment, asset turnover, the profitmargin, and leverage.

Du Pont Equation / Equação Du Pont A formula which shows that the rate of return on assets can be found as the product of the profitmargin times the total assets turnover.

EEarnings Per Share (EPS) / Lucro Por Ação

Net income divided by the number of share of common Stock outstanding.EBIT / Lucro Antes dos Juros e Impostos

The Earnings Before Interest and Taxes line on the income statement that represents the netoperating income of the company.

EBITDA / Lucro Antes dos Juros, Impostos, Depreciação e Amortização The Earnings Before Interest, Taxes, Depreciation and Amortization line on the income statementthat represents the gross operating income of the company.

Economic Value Added (EVA) / Valor Econômico Adicionado Value added to shareholders by management during a given year.

Effective (Equivalent) Annual Rate (EAR/EFF%) / Taxa Anual Efetiva (Equivalente) The annual rate of interest actually being earned, as opposed to the quoted rate. Also called the"equivalent annual rate."

Efficient Markets Hypothesis (EMH) / Hipótese de Mercados Eficientes

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The hypothesis that securities are typically in equilibrium-that they are fairly priced in the sensethat the price reflects all publicly available information on each security.

Equilibrium / Equilíbrio

The condition under which the expected return on a security, , is just equal to its required return,

k . Also, = , and the price is stable.

k ̂

0P̂ 0P

Equivalent Annual Annuity (EAA) Method / Método de Anuidade Anual Equivalente

A method which calculates the annual payments a project would provide if it were an annuity.When comparing projects of unequal lives, the one with the higher equivalent annual annuityshould be chosen.

Eurobond / Eurobônus A bond sold in a country other than the one in whose currency the bond is denominated.

Eurodollar / Eurodólar A U.S. dollar deposited in a bank outside the United States.

Ex-Dividend Date / Data de Exclusão dos DividendosThe date on which the right to the current dividend no longer accompanies a stock; it is usuallyfour working days prior to the holder-of-record date.

Exchange Rate / Taxa de Câmbio

The number of units of a given currency that can be purchased for one unit of another currency.Exchange Rate Risk / Risco de Taxa de Câmbio

The risk that relates to what the basic cash flows will be worth in the parent company's homecurrency.

Executive Stock Option / Opção de Compra de Ações do Executivo An option to buy stock at a stated price within a specified time period that is granted to anexecutive as part of his or her compensation package.

Expansion Project / Projeto de Expansão A project that is intended to increase sales.

Expectations Theory / Teoria das Expectativas A theory which states that the shape of the yield curve depends on investors' expectations about

future interest rates.

Expected Rate of Return ( ) / Taxa de Retorno Esperada k ̂The rate of return expected to be realized from an investment; the weighted average of the probability distribution of possible results.

Expected Return on a Portfolio ( ) / Retorno Esperado sobre uma Carteira Pk ̂The weighted average of the expected returns on the assets held in the portfolio.

Expected Total Return / Retorno Total Esperado The sum of the expected dividend yield and the expected capital gains yield.

Externalities / ExternalidadesEffects of a project on cash flows in other parts of the firm.

FFASB #13

The statement of the Financial Accounting Standards Board that details the conditions and procedures for capitalizing leases.

Federal Reserve (Board) / Banco Central dos Estados Unidos Institution responsible for (1) conducting the U.S. monetary policy; (2) supervising and regulating banking institutions and protecting the credit rights of consumers; (3) maintaining the stability of

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the financial system; and (4) providing certain financial services to the U.S. government, the public, financial institutions, and foreign official institutions.

FVAn The future value of an annuity over n periods.

Fair (Equilibrium) Value / Valor Justo (de Equilíbrio) The price at which investors are indifferent between buying or selling a security.

Financial Futures / Futuros Financeiros A contract that is used to hedge against fluctuating interest rates, stock prices, and exchange rates.Financial Intermediaries / Intermediários Financeiros

Specialized financial firms that facilitate the transfer of funds from savers to demanders of capital.Financial Lease / Arrendamento Financeiro

A lease that does not provide for maintenance services, is not cancelable, and is fully amortizedover its life; also called a capital lease.

Financial Leverage / Alavancagem Financeira The use of debt financing.

Financial Leverage / Alavancagem Financeira The extent to which fixed-income securities (debt and preferred stock) are used in a firm's capital

structure.Financial Merger / Fusão Financeira A merger in which the firms involved will not be operated as a single unit and from which nooperating economies are expected.

Financial Risk / Risco Financeiro An increase in stockholders' risk, over and above the firm's basic business risk, resulting from theuse of financial leverage.

Financial Service Corporation / Empresa de Serviços Financeiros A firm which offers a wide range of financial services, including investment banking, brokerageoperations, insurance, and commercial banking.

Fixed Assets Turnover Ratio / Índice de Rotatividade dos Ativos Fixos The ratio of sales to net fixed assets.

Fixed Charge Coverage Ratio / Índice de Cobertura dos Despesas Fixas This ratio extends the TIE ratio to include the firm's annual long-term lease and sinking fundobligations.

Fixed Exchange Rate System / Sistema de Taxa de Câmbio Fixa The world monetary system in existence after World War II until 1971, under which the value ofthe U.S. dollar was tied to gold, and the values of the other currencies were pegged to the U.S.dollar.

Floating Exchange Rates / Taxas de Câmbio Flutuantes A system under which exchange rates are not fixed by government policy but are allowed to floatup or down in accordance with supply and demand.

Floating Rate Bond / Bônus de Taxa Variável A bond whose interest rate fluctuates with shifts in the general level of interest rates.

Flotation Cost (F) / Custo de Emissão The percentage cost of issuing new common stock.

Foreign Bond / Bônus Estrangeiro A bond sold by a foreign borrower but denominated in the currency of the country in which it issold.

Foreign Bonds / Bônus Estrangeiro Bonds issued by either foreign governments or foreign corporations.

Formula Value / Valor de Fórmula

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The value of an option calculated at the current stock price minus the strike, or exercise, price.Forward Contract / Contrato a Termo

A contract under which one party agrees to buy a commodity at a specific price on a specificfuture date and the other party agrees to make the sale. Physical delivery occurs.

Forward Exchange Rate / Taxa de Câmbio a Termo An agreed-upon price at which two currencies will be exchanged at some future date.

Founders' Shares / Ações dos Fundadores Stock owned by the firms' founders that has sole voting rights but restricted dividends for aspecified number of years.

Free Cash Flows / Fluxos de Caixa Livre The firm's operating cash flows less mandatory equity investments.

Free Trade Credit Credit received during the discount period.

Friendly Merger / Fusão Amigável A merger whose terms are approved by the managements of both companies.

Future Value (FV) / Valor Futuro The amount to which a cash flow or series of cash flows will grow over a given period of time

when compounded at a given interest rate.Future Value Interest Factor for an Annuity (FVIFAi,n) The future value interest factor for an annuity of n periods compounded at i percent.

Future Value Interest Factor for i and n (FVIFi,n) The future value of $1 left on deposit for n periods at a rate of i percent per period.

Futures Contract / Contrato Futuro Standardized contracts that are traded on exchanges and are "marked to market" daily, but where physical delivery of the underlying asset is virtually never taken.

GGoing Public / Abertura de Capital

The act of selling stock to the public at large by a closely held corporation or its principalstockholders.

Golden Parachutes / “Pára-quedas de Ouro”Large payments made to the managers of a firm if it is acquired.

Growth Rate (g) / Taxa de Crescimento The expected rate of growth in dividends per share.

HHedging / Proteção

Using transactions to lower risk.Holder-of-Record Date / Data do Detentor do Registro

If the company lists the stockholder as owner on this date, then the stockholder receives thedividend.

Holding Company / Empresa de Participação A corporation that own sufficient common stock of another firm to achieve working control overit.

Horizontal Merger / Fusão Horizontal A combination of two firms that produce the same type of good or service.

Hostile Merger / Fusão Hostil A merger in which the target firm's management resists acquisition.

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Hostile Takeover / Aquisição Hostil The acquisition of a company over opposition of its management.

Hurdle Rate / Taxa Mínima The discount rate (cost of capital) which the IRR must exceed if a project is to be accepted.

IImproper Accumulation / Acumulação Imprópria

Retention of earnings by a business for the purpose of enabling stockholders to avoid personalincome taxes.

Income Bond / Bônus de Lucro A bond that pays interest only if the interest is earned.

Income Statement / Declaração de Resultados A statement summarizing the firm's revenues and expenses over an accounting period, generally aquarter or a year.

Incremental Cash Flow / Fluxo de Caixa Incremental The net cash flow attributable to an investment project.

Indenture / Promessa de Pagamento

A formal agreement between the issuer of a bond and the bondholders.Independent Projects / Projetos Independentes

Projects whose cash flows are not affected by the acceptance or nonacceptance of there projects.Indexed (Purchasing Power) Bond / Bônus Indexado (ao Poder de Compra)

A bond that has interest payments based on an inflation index so as to protect the holder frominflation.

Inflation / Inflação The tendency of prices to increase over time.

Inflation Premium (IP) / Prêmio de Inflação A premium equal to expected inflation that investors added to the real risk-free rate of return.

Inflow / Entrada de Caixa

A cash receipt.Information Content (Signaling) Hypothesis / Hipótese (Sinalizadora) de Conteúdo Informacional

The theory that investors regard dividend changes as signals of management's earnings forecasts.Initial Public Offering (IPO) Market / Mercado de Oferta Pública Inicial

The market consisting of stocks of companies that are in the process of going public.Interest Rate Parity / Paridade da Taxa de Juros

Specifies that investors should expect to earn the same return in all countries after adjusting forrisk.

Interest Rate Risk / Risco da Taxa de Juros The risk of capital losses to which investors are exposed because of changing interest rates.

Interest Rate Risk / Risco da Taxa de Juros

The risk of a decline in a bond's price due to an increase in interest rates.Internal Rate of Return (IRR) / Taxa Interna de Retorno

The discount rate which forces the PV of a project's inflows to equal the PV of its costs. Internal Rate of Return (IRR) Method / Método da Taxa Interna de Retorno

A method of ranking investment proposal using the rate of return on an investment, calculated byfinding the discount rate that equates the present value of future cash inflow s to the project's cost.

Intrinsic Value ( ) / Valor Intrínseco 0P̂

The value of an asset that, in the mind of a particular investor, is justified by the facts;^Po may bedifferent from the asset's current market price, its book value, or both.

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Inventory Turnover Ratio / Índice de Rotatividade do Estoque The ratio calculated by dividing sales by inventories.

Inverse Floater / Variável Inversa A note in which the interest paid moves counter to market rates.

Inverted ("Abnormal") Yield Curve / Curva de Rendimento Invertida (“Anormal”) A downward-sloping yield curve.

Investment Banking House / Banco de Investimento An organization that underwrites and distributes new investment securities and helps businessesobtain financing.

Investment Grade Bonds / Bônus de Classificação de Investimento Bonds rated triple-B or higher; many banks and other institutional investors are permitted by lawto hold only investment grade bond.

Investment Opportunity Schedule (IOS) / Cronograma de Oportunidade de Investimento A graph of the firm's investment opportunities ranked in order of the projects' rates of return.

JJoint Venture / Projeto de Risco

A corporate alliance in which two or more independent companies combine their resources toachieve a specific, limited objective.

Junk Bond / Bônus de Alto Risco A high-risk, high-yield bond.

Just-in-Time (JIT) System / Sistema “Just-in-Time”A system of inventory control in which a manufacturer coordinates production with suppliers sothat raw materials or components arrive just as they are needed in the production process.

LLessee / Arrendatário

The party that uses, rather than the one who owns, the leased property.Lessor / Arrendador

The owner of the leased property.Leveraged Buyout (LBO) / Compra Alavancada

A situation in which a small group of investors (which usually includes the firm's managers borrows heavily to buy all the shares of a company.

Limited Liability Partnership (Company) / Sociedade Por Quotas de Responsabilidade Limitada A hybrid form of organization in which all partners enjoy limited liability for the business's debts.It combines the limited liability advantage of a corporation with the tax advantages of a partnership.

Limited Partnership / Sociedade Por Quotas Limitada A Hybrid form of organization consisting of general partners who have unlimited liability for the partnership's debts, and limited partners, whose liability is limited to the amount of theirinvestment

Line of Credit / Linha de Crédito An informal arrangement in which a bank agrees to lend up to a specified maximum amount offunds during a designated period.

Liquid Asset / Ativo Líquido An asset that can be converted to cash quickly without having to reduce the asset's price verymuch.

Liquidation / Liquidação

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A liquidation occurs when the assets of a division are sold off piecemeal, rather than as anoperating entity.

Liquidity Preference Theory / Teoria da Preferência por Liquidez The theory that lenders, other things held constant, would prefer to make short-term loans ratherthan long-term loans; hence, they will lend short-term funds at lower rates than long-term funds.

Liquidity Premium (LP) / Prêmio de Liquidez

A premium added to the equilibrium interest rate on a security if that security cannot be convertedto cash on short notice and at close to "fair market value."Liquidity Ratios / Índices de Liquidez

Ratios that show the relationship of a firm's cash and other current assets to its current liabilities.Lockbox Plan / Plano de Caixa Postal

A procedure used to speed up collections and reduce float through the use of post office boxes in payers' local areas.

Long Hedges / Proteções Longas Futures contracts are bought in anticipation of (or to guard against) price increases.

Long-Term Equity Anticipation Security (LEAPS) / Opções de Antecipação de Ações de Longo Prazo Long-term options that are listed on the exchanges and tied to both individual stocks and to stock

indexes.Low-Regular-Dividend-Plus-Extras / Dividendo Regular Baixo Mais Extras The policy of announcing a low regular dividend that can be maintained no matter what, and thenwhen times are good paying a designated "extra" dividend.

Lumpy Assets / Ativos SubstanciaisAssets that cannot be acquired in small increments but must be obtained in large, discrete units.

M

Marginal Cost of Capital (MCC) / Custo de Capital Marginal

The cost of obtaining another dollar of new capital; the weighted average cost of the last dollar of

new capital raised.Marginal Cost of Capital (MCC) Schedule / Cronograma do Custo de Capital Marginal

A graph that relates the firm's weighted average cost of each dollar of capital to the total amountof new capital raised.

Marginal Investor / Investidor Marginal A representative investor whose actions reflect the beliefs of those people who are currentlytrading a stock. It is the marginal investor who determines a stock's price.

Marginal Tax Rate / Alíquota de Imposto Marginal The tax rate applicable to the last unit of a person's income

(Market) Capitalization / Valor de Mercado de uma Empresa Market value of a corporation. Number of shares outstanding X share price.

Market Making / “Fazer um Mercado”Activity carried out by a dealer which always provides bid and ask prices for a certain security.

Market Portfolio / Carteira do Mercado A portfolio consisting of all stocks.

Market Price ( P o) / Preço de Mercado The price at which a stock sells in the market.

Market Risk / Risco de Mercado That part of a security's risk that cannot be eliminated by diversification.

Market Risk Premium ( RP M ) / Prêmio de Risco de Mercado

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The additional return over the risk-free rate needed to compensate investors for assuming anaverage amount of risk.

Market Value Added (MVA) / Valor de Mercado Adicionado The difference between the market value of equity and the amount of equity capital that investorssupplied.

Market Value Ratios / Índice do Valor de Mercado

A set of ratios that relate the firm's stock price to its earnings and book value per share.Market, or Beta, Risk / Risco de Mercado (ou Beta) That part of a project's risk that cannot be eliminated by diversification; it is measured by the project's beta coefficient.

Market/Book (M/B) Ratio / Relação Valor de Mercado/Valor Contábil The ratio of a stock's market price to its book value.

Marketable Securities / Títulos Negociáveis Securities that can be sold on short notice.

Maturity Date / Data de Vencimento A specified date on which the par value of a bond must be repaid.

Maturity Matching (or "Self-Liquidating") Approach / Aproximação de Casamento de Vencimentos

A financing policy that matches asset and liability maturities. This is a moderate policy.Maturity Risk Premium (MRP) / Prêmio de Risco de Vencimento A premium which reflects interest rate risk.

Medicare / MedicareThe largest health insurance program in the U.S., which covers over 39 million Americans. It provides health insurance to people age 65 and over, those who have permanent kidney failure,and certain people with disabilities.

Merger / Fusão The combination of two firms to form a single firm.

Moderate Current Asset Investment Policy / Política Moderada de Investimento de Ativos Circulantes A policy that is between the relaxed and restricted policies.

Modified IRR (MIRR) / Taxa Interna de Retorno Modificada The discount rate at which the present value of a project's cost is equal to the present value of itsterminal value, where the terminal value is found as the sum of the future values of the cashinflows, compounded at the firm's cost of capital.

Money Market Fund / Fundo do Mercado Monetário A mutual fund that invests in short-term, low-risk securities and allows investors to write checksagainst their accounts.

Money Markets / Mercados Monetários Then financial markets in which funds are borrowed or loaned for short periods (less than oneyear).

Monte Carlo Simulation / Simulação de Monte Carlo A risk analysis technique in which probable future events are simulated on a computer generatingestimated rates of return and risk indexes.

Mortgage Bond / Bônus Hipotecário A bond backed by fixed assets. First mortgage bonds are senior in priority to claims of secondmortgage bonds.

Multinational (Global) Corporation / Empresa Multinacional (Global)A firm that operates in an integrated fashion in a number of countries.

Multiple IRRs / Múltiplas Taxas Internas de Retorno The situation where a project has two or more IRRs.

Municipal Bonds / Bônus Municipais

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Bonds issued by state and local governments.Mutually Exclusive Projects / Projetos Mutuamente Excludentes

A set of projects where only one can be accepted.

NNatural Hedges / Proteção Natural

Situations in which the aggregate risk can be reduced by derivatives transactions between two parties.

Net Cash Flow / Fluxo de Caixa Líquido The actual net cash, as opposed to accounting net income, that a firm generates during somespecified period.

Net Float / Saldo Líquido The difference between our checkbook balance and the balance shown on the bank's books.

Net Present Value (NPV) Method / Método do Valor Presente Líquido A method of ranking investment proposals using the NPV, which is equal to the present value offuture net cash flows, discounted at the marginal cost of capital.

Net Present Value Profile / Perfil do Valor Presente Líquido A graph showing the relationship between a project's NPV and the firm's cost of capital.

Net Working Capital / Capital de Giro Líquido Current assets minus current liabilities.

Nominal Rate of Interest / Taxa de Juros Nominal The rate of interest on a security

Nominal (Quoted) Risk-Free Rate of Interest ( k RF) / Taxa de Juros Livre de Risco Nominal (Cotada) The rate of interest on a security that is free of all risk: k RF is proxied by the T-bill rate or the T- bond rate. k RF includes an inflation premium.

Nominal (Quoted, or Stated) Interest Rate / Taxa de Juros Nominal (Cotada)The contracted, or quoted, or stated, interest rate.

Normal (Constant) Growth / Crescimento Normal (Costante)Growth which is expected to continue into the foreseeable future at about the same rate as that ofthe economy as a whole; g is a constant.

Normal Profits/Rates of Return / Lucros/Taxas de Retorno Normais Those profits and rates of return that are close to the average for all firms and are just sufficient toattract capital.

OOff-Balance Sheet Financing / Financiamentos Fora do Balanço Patrimonial

Financing in which the assets and liabilities involved do not appear on the firm's balance sheet.Operating Cash Flow / Fluxo de Caixa Operacional

That cash flow which arises from normal operations; the difference between sales revenues andcash operation expenses, after taxes on operation income.

Operating Company / Empresa Operacional A subsidiary of a holding company operated as a separate legal entity.

Operating Lease / Arrendamento Operacional A lease under which the lessor maintains and finances the property; also called a service lease.

Operating Leverage / Alavancagem Operacional The extent to which fixed costs are used in a firm's operations.

Operating Merger / Fusão Operacional

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A merger in which operations of the firms involved are integrated in hope of achieving synergistic benefits.

Opportunity Cost / Custo de Oportunidade The return on the best alternative use of an asset, or the highest return that will not be earned iffunds are invested in a particular project.

Optimal Dividend Policy / Política de Dividendos Ótima

The dividend policy that strikes a balance between current dividends and future growth andmaximizes the firm's stock price.Option / Opção

A contract which gives its holder the right to buy (or sell) an asset at a predetermined price withina specified period of time.

Ordinary (Deferred) Annuity / Anuidade Ordinária (Diferida) An annuity whose payments occur at the end of each period.

Organized Security Exchange / Bolsa de Valores Organizada A formal organization having a tangible physical location that facilitates trading in designated("listed") securities. The two major U.S. security exchanges are New York Stock Exchange(NYSE) and the American Stock Exchange (AMEX).

Original Issue Discount Bond / Bônus Emitido Originalmente com Desconto Any bond originally offered at a price below its par value.Original Maturity / Vencimento Original

The number of years to maturity at the time a bond is issued.Out-Sourcing / Terceirização

The practice of purchasing components rather than making them in-house.Outflow / Saída de Caixa

A cash deposit, cost, or amount paid. Has a minus sign.Over-the-Counter (OTC) Market / Mercado de Balcão

The network of dealers that provides for trading in unlisted securities.Over-the-Counter Market / Mercado de Balcão

A large collection of brokers and dealers, connected electronically by telephones and computers,that provides for trading in unlisted securities.

PPar Value / Valor de Face

The face value of a stock or bond.Parent Company / Matriz

A holding company; a firm which controls another firm by owning a large block of its stock.Partnership / Sociedade

An unincorporated business owned by two or more persons.Payback Period / Período de Retorno do Investimento

The length of time required for an investment's net revenues to cover its cost.Payment (PMT) / Pagamento

This term designates equal cash flows coming at regular intervals.Payment Date / Data de Pagamento

The date on which a firm actually mails dividend checks.Pegged Exchange Rate / Taxa de Câmbio Fixa

Occurs when a country establishes a fixed exchange rate with another major currency;consequently, values of pegged currencies move together over time.

Perfect Hedge / Proteção Perfeita

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Occurs when the gain or loss on the hedged transaction exactly offsets the loss or gain on theunhedged position.

Performance Shares / Ações de Desempenho Stock which is awarded to executives on the basis of the company's performance.

Permanent Current Assets / Ativos Circulantes Permanentes Current assets that a firm must carry even at the trough of its cycles.

Perpetuity / Perpetuidade A stream of equal payments expected to continue forever.Poison Pill / Pílula de Veneno

An action which will seriously hurt a company if it is acquired by another.Political Risk / Risco Político

Potential actions by a host government which would reduce the value of a company's investment.Post-Audit / Auditoria Posterior

A comparison of the actual versus the expected results for a given capital project.Precautionary Balance / Saldo de Precaução

A cash balance held in reserve for random, unforeseen fluctuations in cash inflow and outflows.Preemptive Right / Direito de Compra

A provision in the corporate charter or bylaws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock (or convertible securities).Premium Bond / Bônus Vendido acima do Valor de Face

A bond that sells above its par value; occurs whenever the going rate of interest falls below thecoupon rate.

Premium on Forward Rate / Prêmio sobre a Taxa Antecipada The situation when the spot rate is greater than the forward rate.

Present Value (PV) / Valor Presente The value today of a future cash flow or series of cash flows.

Present Value Interest Factor for an Annuity (PVIFAi,n) The present value interest factor for an annuity of n periods discounted at i percent

Present Value Interest Factor for i and n (PVIFi,n) The present value of $1 due n periods in the future discounted at i percent per period

Price/Earnings (P/E) Ratio / Relação Preço/Lucro The ratio of the price per share to earnings per share; shows the dollar amount investors will payfor $1 of current earnings.

Primary Markets / Mercados Primários Markets in which corporations raise capital by issuing new securities.

Prime Rate / Taxa Preferencial A published interest rate charged by commercial banks to large, strong borrowers.

Probability Distribution / Distribuição de Probabilidade A listing of all possible outcomes, or events, with a probability (chance of occurrence) assigned toeach outcome.

Production Opportunities / Oportunidades de Produção The returns available within an economy from investments in productive (cash-generating) assets.

Professional Corporation (Pro Association) / Associação Profissional A type of corporation common among professional that provides most of the benefits ofincorporation but does not relieve the participants of malpractice.

Profit Margin on Sales / Margem de Lucro Sobre Vendas This ratio measures income per dollar of sales; it is calculated by dividing net income by sales.

Profit Maximization / Maximização do Lucro The maximization of the firm's net income.

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Profitability Ratios / Índices de Lucratividade A group of ratios which show the combined effects of liquidity, asset management, and debts onoperating results.

Progressive Tax / Tributação Progressiva A tax system where the tax rate is higher on higher incomes. The personal income tax in theUnited States, which goes form 0 percent on the lowest increments of income to 39.6 percent, is

progressive.Project Cost of Capital (kp) / Custo de Capital do Projeto The risk-adjusted cost of capital for an individual project.

Promissory Note / Nota Promissória A document specifying the terms and conditions of a loan including the amount, interest rate, andrepayment schedule.

Proxy / Procuração A document giving one person the authority to act for another, typically the power to vote share ofcommon stock.

Proxy Fight / Disputa por Procuração An attempt by a person or group to gain control of a firm by getting its stockholders to grant that

person or group the authority to vote their shares to place a new management into office.Publicly Owned Corporation / Empresa de Capital Aberto A corporation that is owned by a relatively large number of individuals who are not activelyinvolved in its management.

Purchasing Power Parity / Paridade de Poder de Compra The relationship where the same products cost roughly the same amount in different countriesafter taking into account the exchange rate.

Pure Play Method / Método do Mesmo Negócio An approach used for estimating the beta of a project in which a firm (1) identifies severalcompanies whose only business is the product in question, (2) calculates the beta for each firm,and then (3) averages the betas to find an approximation to its own projects beta.

Put Option / Opção de Venda An option to sell a share of stock at a certain price within a specified period.

PVAn The present value of an annuity of n periods.

QQuick (Acid Test) Ratio / Índice de Liquidez Seco ou Teste Ácido

This ratio is calculated by deducting inventories from current assets and dividing the remainder bycurrent liabilities.

RReal Risk-Free Rate of Interest ( *k ) / Taxa de Juros Real Livre de Risco

The rate of interest that would exist on default-free U.S. Treasury securities if no inflation wereexpected.

Realized Rate of Return ( k ) / Taxa de Retorno Realizado

The return that was actually earned during some past period. The actual return ( k ) usually turns

out to be different from the expected return ( k ).ˆ

Red-Line Method / Método da Linha Vermelha

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An inventory control procedure in which a red line is drawn around the inside of an inventory-stocked bin to indicate the reorder point level.

Regular, or Simple, Interest / Juros Simples The situation when interest is not compounded, that is, interest is not earned on interest.

Reinvestment Rate Assumption / Hipótese da Taxa de Reinvestimento The assumption that cash flows from a project can be reinvested (1) at the cost of capital, if using

the NPV method, or (2) at the internal rate of return, if using the IRR method.Reinvestment Rate Risk / Risco da Taxa de Reinvestimento The risk that a decline in interest rates will lead to lower income when bonds mature and funds arereinvested.

Reinvestment Rate Risk / Risco da Taxa de Reinvestimento The risk that a decline in interest rates will lead to a decline in income from a bond portfolio.

Relaxed Current Asset Investment Policy / Política Relaxada de Investimento em Ativo CirculanteA policy under which relatively large amounts of cash, marketable securities, and inventories arecarried and under which sales are stimulated by a liberal credit policy, resulting in a high level ofreceivables.

Relevant Cash Flows / Fluxos de Caixa Relevantes

The specific cash flows that should be considered in a capital budgeting decision.Relevant Risk / Risco Relevante The risk of a security that cannot be diversified away, or its market risk. This reflects a security'scontribution to the riskiness of a portfolio.

Repatriation of Earnings / Repatriação de Lucros The process of sending cash flows from a foreign subsidiary back to the parent company.

Replacement Analysis / Análise de Substituição An analysis involving the decision of whether or not to replace an existing asset with a new asset.

Replacement Chain (Common Life) Approach / Abordagem da Cadeia de Substituição A method of comparing projects of unequal lives which assumes that each project can be repeatedas many times as necessary to reach a common life span; the NPV’s over this life span are thencompared, and the project with the higher common life NPV is chosen.

Required Rate of Return (ks) / Taxa de Retorno Requerida The minimum rate of return on a common stock that a stockholder considers acceptable.

Reserve Borrowing Capacity / Capacidade de Empréstimo de Reserva The ability to borrow money at a reasonable cost when good investment opportunities arise. Firmsoften use less debt than specified by the MM optimal capital structure to ensure that they canobtain debt capital later if they need to.

Residual Dividend Model / Modelo do Dividendo Residual A model in which the dividend paid is set equal to the actual earnings minus the amount ofretained earnings necessary to finance the firm's optimal capital budget.

Residual Value / Valor Residual The value of leased property at the end of the lease term.

Restricted Current Asset Investment Policy / Política Restrita de Investimento em Ativo Circulante A policy under which holdings of cash, securities, inventories, and receivables are minimized.

Retained Earnings / Lucros Retidos That portion of the firm's earnings that has been saved rather than paid out as dividends.

Return On Common Equity (ROE) / Retorno Sobre o Patrimônio Líquido The ratio of net income to common equity; measures the rate of return on common stockholders'investment.

Return On Total Assets (ROA) / Retorno Sobre os Ativos Totais The ratio of net income to total assets.

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Revaluation / Reavaliação The process of officially increasing the value of a country's currency relative to other currencies.

Revolving Credit Agreement / Contrato de Crédito Rotativo A formal, committed line of credit extended by a bank or other lending institution.

Risk / Risco In a financial market context, the chance that an investment will not provide the expected return.

The chance that some unfavorable event will occur.Risk Aversion / Aversão ao Risco Risk-averse investors dislike risk and require higher rates of return as an inducement to buy riskiersecurities.

Risk Management / Administração de Risco Involves the management of unpredictable events that have adverse consequences for the firm.

Risk Premium (RP) / Prêmio de Risco The difference between the expected rate of return on a given risky asset and that on a less riskyasset.

Risk-Adjusted Discount Rate / Taxa de Desconto Ajustada ao Risco The discount rate that applies to a particular risky stream of income; the riskier the project's

income stream, the higher the discount rate.

SS Corporation / Empresa Tipo S

A small corporation which, under Subchapter S of the Internal Revenue Code, elects to be taxed asa proprietorship or a partnership yet retains limited liability and other benefits of the corporateform of organization.

Sale and Leaseback / Venda Seguida de Arrendamento An arrangement whereby a firm sells land, buildings, or equipment and simultaneously leases the property back for a specified period under specific terms.

Sales Forecast / Previsão de Vendas

A forecast of a firm's unit and dollar sales for some future period; it is generally based on recentsales trends plus forecasts of the economic prospects for the nation, region, industry, and so forth.

Scenario Analysis / Análise de Cenários A risk analysis technique in which "bad" and " good" sets of financial circumstances are comparedwith a most likely, or base-case, situation.

Seasonal Dating / Data SazonalTerms used to induce customers to buy early by not requiring payment until the purchaser's sellingseason, regardless of when the goods are shipped.

Secondary Markets / Mercado Secundário Markets in which (debt and equity) securities and financial assets are traded among investors afterthey have been issued by corporations.

Secured Loan / Empréstimo Garantido A loan backed by collateral, often inventories or receivables.

Securities / Títulos Documents or certificates that represent an investment in a company (commercial paper, notes, bonds, etc.) or in government debt (bills, notes and bonds) which can be traded on the financialmarkets and which produces an income for the investor.

Security Market Line (SML) / Linha de Mercado de Títulos The line on a graph that shows the relationship between risk as measured by beta and the requiredrate of return for individual securities.

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Semiannual Compounding / Capitalização Semestral The arithmetic process of determining the final value of a cash flow or series of cash flows wheninterest is added twice a year.

Sensitivity Analysis / Análise de Sensibilidade A risk analysis technique in which key variables are changed one at a time and the resultingchanges in the NPV and IRR are observed.

Short Hedges / Proteção de Queda Futures contracts are sold to guard against price declines.Signal / Sinal

An action taken by a firm's management which provides clues to investors about how managementviews the firm's prospects.

Sinking Fund Provision / Cláusula de Fundo de Amortização A provision in a bond contract that requires the issuer to retire a portion of the bond issue eachyear.

Social Responsibility / Responsabilidade Social The concept that businesses should be actively concerned with the welfare of society at large.

Sole Proprietorship / Empresa Individual

An unincorporated business owned by one individualSpeculation / Especulação With futures, it involves betting future price movements.

Speculative Balance / Saldo Especulativo A cash balance that is held to enable the firm to take advantage of any bargain purchases thatmight arise.

Spin-Off / Desinvestimento A divestiture in which the stock of a subsidiary is given to the parent company's stockholders.

Spontaneously Generated Funds / Fundos Gerados Espontaneamente Funds that are obtained automatically from routine business transactions.

Spot Rate / Taxa de Câmbio à Vista The effective exchange rate for a foreign currency for delivery on (approximately) the current day.

Stand -Alone Risk / Risco ÚnicoThe risk an investor would face if he or she held only one asset Stand-alone risk is one part of"total risk," with the other part being risk which can be eliminated through diversification.

Stand-Alone Risk / Risco ÚnicoThe risk an asset would have if it were a firm's only asset and if investors owned only one stock. Itis measured by the variability of the asset's expected returns.

Standard Deviation / Desvio Padrão A statistical measure of the variability of a set of observations.

Statement of Cash Flows / Declaração de Fluxo de Caixa A statement reporting the impact of a firm's operating, investing, and financing activities on cashflows over an accounting period.

Statement of Retained Earnings / Declaração de Lucros Retidos A statement reporting how much of the firm's earnings were retained in the business rather than paid out in dividends. The figure for retained earnings that appears here is the sum of the annualretained earnings for each year of the firm's history.

Stepped-Up Exercise Price / Preço de Exercício Crescente An exercise price that is specified to rise if a warrant is exercised after a designated date.

Stock Dividend / Dividendo em Ações A dividend paid in the form of additional shares of stock rather than in cash.

Stock Repurchase / Recompra de Ações

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A transaction in which a firm buys back shares of its own stock, thereby decreasing shareoutstanding, increasing EPS, and, often, increasing the stock price.

Stock Split / Desdobramento de Ações An action taken by a firm to increase the number of share outstanding, such as doubling thenumber of share outstanding by giving each stockholder two new share for each one formerlyheld.

Stockholder Wealth Maximization / Maximização da Riqueza do Acionista The primary goal for management decision; considers the risk and timing associated with expectedearnings per share in order to maximize the price of the firm's common stock.

Strategic Business Plan / Plano de Negócios EstratégicoA long-run plan which outlines in broad terms the firm's basic strategy for the next 5 to 10 years.

Stretching Accounts Payable / Contas a Pagar The practice of deliberately paying late.

Strike (Exercise) Price / Preço de Exercício The price that must be paid for a share of common stock when an option is exercised.

Structured Note / Nota EstruturadaA debt obligation derived from another debt obligation.

Subordinated Debentures / Debêntures Subordinadas A bond having a claim on assets only after the senior debt has been paid off in the event ofliquidation.

Sunk Cost / Custo PerdidoA cash outlay that has already been incurred and which cannot be recovered regardless of whetherthe project is accepted or rejected.

Supernormal (Nonconstant) Growth / Crescimento Supernormal (Não Constante)The part of the life cycle of a firm in which it grows much faster than the economy as a whole.

Swap / TrocaTwo parties agree to exchange obligations to make specified payment streams.

Symmetric Information / Informação Simétrica The situation in which investors and managers have identical information about firms' prospects.

Synchronized Cash Flows / Fluxos de Caixa Sincronizados A situation in which inflows coincide with outflows, thereby permitting a firm to hold lowtransactions balances.

Synergy / SinergiaThe condition wherein the whole is greater than the sum of its parts; in a synergistic merger, the postmerger value exceeds the sum of the separate companies' premerger values.

TTakeover / Tomada do Controle

An action whereby a person or group succeeds in ousting a firm's management and taking control

of the company.Target (Optimal) Capital Structure / Estrutura de Capital Alvo (Ótima)

The percentages of debt, preferred stock, and common equity that will maximize the firm's stock price. Or the mix of debt, preferred stock, and common equity with which the firm plans to raisecapital.

Target Cash Balance / Saldo de Caixa Alvo The desired cash balance that a firm plans to maintain in order to conduct business.

Target Company / Empresa Alvo A firm that another company seeks to acquire.

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Target Payout Ratio / Índice de Pagamento de Dividendos Alvo The percentage of net income paid out as cash dividends.

(Tax Loss) Carry-Back and Carry-Forward / Compensação de Prejuízos Ordinary corporate operation losses can be carried backward for 3 years or forward for 15 years tooffset taxable income in a given year.

Taxable Income / Receita Tributável

Gross income minus exemptions and allowable deductions as set forth in the Tax Code.Temporary Current Assets / Ativos Circulantes TemporáriosCurrent assets that fluctuate with seasonal or cyclical variations in sales.

Tender Offer / Oferta de Compra The offer of one firm to buy the stock of another by going directly to the stockholders, frequently(but not always) over the opposition of the target company's management.

Term Structure of Interest Rates / Estrutura de Prazos de Taxas de Juros The relationship between bond yields and maturities.

Terminal Value / Valor FuturoThe future value of an uneven cash flow stream.

Time Line / Linha do Tempo

An important tool used in time value of money analysis; it is a graphical representation used toshow the timing of cash flows.Time Preferences for Consumption / Preferências Temporais para Consumir

The preferences of consumers for current consumption as opposed to saving for futureconsumption.

Times-Interest-Earned (TIE) Ratio / Índice do Múltiplo do Valor de Juros The ratio of earnings before interest and taxes (EBIT) to interest charges; measures the ability ofthe firm to meet its annual interest payments. Or a ratio that measures the firm's ability to meet itsannual interest obligations calculated by dividing earnings before interest and taxes by interestcharges: TIE = EBIT/I.

Total Assets Turnover Ratio / Índice de Rotatividade dos Ativos Totais The ratio calculated by dividing sales by total assets.

Trade Credit / Crédito de Comércio Debt arising from credit sales and recorded as an account receivable by the seller and as anaccount payable by the buyer.

Trade Deficit / Déficit Comercial A situation where a country imports more than it exports.

Trade Discount / Desconto Padrão A price reduction that suppliers offer customer for early payment of bills.

Transactions Balance / Saldo de Transações A cash balance associated with payments and collection; the balance necessary for day-to-dayoperations.

Treasury Bills / Letras do Tesouro Short-term debt securities issued by the U.S. federal government.

Treasury Notes / Notas do Tesouro Medium-term debt securities issued by the U.S. federal government.

Treasury Bonds / Bônus do Tesouro Long-term debt securities issued by the U.S. federal government, sometimes referred to asgovernment bonds.

Trend Analysis / Análise de Tendências An analysis of a firm's financial ratios over time; used to estimate the likelihood of improvementor deterioration in its financial situation.

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Two-Bin Method / Método das Duas Caixas An inventory control procedure in which an order is placed when one of two inventory-stocked bins is empty.

U

Uneven Cash Flow Stream / Fluxos de Caixa Não Constantes

A series of cash flows in which the amount varies from one period to the next.

VVariance / Variância

The square of the standard deviationVertical Merger / Fusão Vertical

A merger between a firm and one of its suppliers or customers.

WWarrant / Opção de Compra de Ações (Warrant )

A long-term option to buy a stated number of shares of common stock at specified price.Weighted Average Cost of Capital (WACC) / Custo Médio Ponderado de Capital

A weighted average of the component costs of debt, preferred stock, and common equity.White Knight / “Cavaleiro Branco”

A company that is acceptable to the management of a firm under threat of a hostile takeover.Window Dressing / Preparação da Vitrine

The act or an instance of making the financial statements appear deceptively attractive orfavorable.

Working Capital / Capital de GiroA firm's investment in short-term assets – cash, marketable securities, inventory, and accountsreceivable.

Working Capital Policy / Política de Capital de Giro Basic policy decision regarding (1) target levels for each category of current assets and (2) howcurrent assets will be financed.

Worst-Case Scenario / Cenário do Pior Caso An analysis in which all the input variables are set at their worst reasonably forecasted values.

YYield Curve / Curva de Rentabilidade

A graph showing the relationship between bond yields and maturities.Yield to Call (YTC) / Rentabilidade até o Resgate Antecipado

The rate of return earned on a bond if it is called before its maturity date.Yield to Maturity (YTM) / Rentabilidade até o Vencimento

The rate of return earned on a bond if it is held to maturity.

ZZero Coupon Bond / Bônus de Cupom Zero

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A bond that pays no annual interest but is sold at a discount below par, thus providingcompensation to investors in the form of capital appreciation.

Zero Growth Stock / Ação de Crescimento Nulo A common stock whose future dividends are not expected to grow at all; that is g=0.