Whilst this is again not one of my more substantive posts, I thought the following glossary of frequently used symbols in corporate finance may be of some interest:

ANk Annuity factor for N years and an interest rate of k

ABCP Asset Backed Commercial Paper

ACES Advanced Computerised Execution System

ADR American Depositary Receipt

APT Arbitrage Pricing Theory

APV Adjusted Present Value

ARR Accounting Rate of Return

BIMBO Buy In Management Buy Out

BV Book Value

Capex Capital Expenditures

CAPM Capital Asset Pricing Model

CAR Cumulative Abnormal Return

CB Convertible Bond

CD Certificate of Deposit

CDO Collateralised Debt Obligation

CE Capital Employed

CFROI Cash Flow Return On Investment

COV Covariance

CVR Contingent Value Right

D Debt, net financial and banking debt

d Payout ratio

DCF Discounted Cash Flows

DDM Dividend Discount Model

DECS Debt Exchangeable for Common Stock; Dividend Enhanced Convertible Securities

DFL Degree of Financial Leverage

Div Dividend

DJ Dow Jones

DOL Degree of Operating Leverage

DPS Dividend Per Share

DR Depositary Receipt

EAT Earnings After Tax

EBIT Earnings Before Interest and Taxes

EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation

EBRD European Bank for Reconstruction and Development

ECAI External Credit Assessment Institution

ECP European Commercial Paper

EGM Extraordinary General Meeting

EMTN European Medium Term Note

ENPV Expanded Net Present Value

EONIA European Over Night Index Average

EPS Earnings Per Share

EðrÞ Expected return

ESOP Employee Stock Ownership Programme

EURIBOR EURopean Inter Bank Offer Rate

EV Enterprise Value

EVA Economic Value Added

EVCA European Private Equity and Venture Capital Association

f Forward rate

F Cash flow

FA Fixed Assets

FASB Financial Accounting Standards Board

FC Fixed Costs

FCF Free Cash Flow

FCFF Free Cash Flow to Firm

FCFE Free Cash Flow to Equity

FE Financial Expenses

FIFO First In, First Out

FRA Forward Rate Agreement

g Growth rate

GAAP Generally Accepted Accounting Principles

GCE Gross Capital Employed

GCF Gross Cash Flow

GDP Global Depositary Receipt

i After-tax cost of debt

IASB International Accounting Standards Board

IFRS International Financial Reporting Standard

IPO Initial Public Offering

IRR Internal Rate of Return

IRS Interest Rate Swap

IT Income Taxes

k Cost of capital, discount rate

kD Cost of debt

kE Cost of equity

K Option strike price

KPI Key Performance Indicator

LBO Leveraged Buy Out

LBU Leveraged Build Up

L/C Letter of Credit

LIBOR London Inter Bank Offer Rate

LIFO Last In, First Out

LMBO Leveraged Management Buy Out

ln Naperian logarithm

LOI Letter Of Intent

LSP Liquid Share Partnership

LYON Liquid Yield Option Note

m Contribution margin

MM Modigliani–Miller

MOU Memorandum Of Understanding

MTN Medium Term Notes

MVA Market Value Added

n Years, periods

N Number of years

NðdÞ Cumulative standard normal distribution

NASDAQ National Association of Securities Dealers Automatic Quotation system

NAV Net Asset Value

NM Not Meaningful

NMS National Market System

NOPAT Net Operating Profit After Tax

NPV Net Present Value

NYSE New York Stock Exchange

OGM Ordinary General Meeting

OTC Over The Counter

Frequently used symbols xxiii

P price

PBO Projected Benefit Obligation

PBR Price to Book Ratio

PBT Profit Before Tax

P/E ratio Price Earnings ratio

PERCS Preferred Equity Redemption Cumulative Stock

PEPs Personal Equity Plans

POW Path Of Wealth

PRIDES Preferred Redeemable Increased Dividend Equity Security

PSR Price to Sales Ratio

P to P Public to Private

PV Present Value

PVI Present Value Index

QIB Qualified Institutional Buyer

r Rate of return, interest rate

rf Risk-free rate

rm Expected return of the market

RNAV Restated Net Asset Value

ROA Return On Assets

ROCE Return On Capital Employed

ROE Return On Equity

ROI Return On Investment

RWA Risk Weighted Assessment

S Sales

SA Standardised Approach

SEC Securities Exchange Commission

SEO Seasoned Equity Offering

SPV Special Purpose Vehicle

STEP Short Term European Paper

SV Salvage Value

t Interest rate, discount rate

T Time remaining until maturity

Tc Corporate tax rate

TCN Titres de Cre´ances Negociables

TMT Technology, Media, Telecommunications

TSR Total Shareholders Return

V Value

VAT Value Added Tax

VC Variable Cost

VD Value of Debt

VE Value of Equity

VðrÞ Variance of return

WACC Weighted Average Cost of Capital

WC Working Capital

y Yield to maturity

YTM Yield to Maturity

Z Scoring function

ZBA Zero Balance Account

I obtained the above list from the book Corporate Finance, Theory and Practice by Pierre Vernimmen, John Wiley and sons, 2005.