What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes
What Is an Aptitude Test? An aptitude test is an exam used to determine an individual’s skill or propensity to succeed in a given activity. Aptitude tests assume that individuals have inherent strengths and weaknesses and have a natural inclination toward success or failure in specific areas based on their innate characteristics. Aptitude tests are
What Is Adjusted Present Value (APV)? The adjusted present value is the net present value (NPV) of a project or company if financed solely by equity plus the present value (PV) of any financing benefits, which are the additional effects of debt. By taking into account financing benefits, APV includes tax shields such as those
What Is Analysis of Variance (ANOVA)? Analysis of variance (ANOVA) is an analysis tool used in statistics that splits an observed aggregate variability found inside a data set into two parts: systematic factors and random factors. The systematic factors have a statistical influence on the given data set, while the random factors do not. Analysts
What Is the American National Standards Institute (ANSI)? The American National Standards Institute (ANSI) oversees the creation and dissemination of various standards and measures, including business norms and standards in the United States. The ANSI is a private, nonprofit organization and does not develop standards itself. Rather, it oversees the creation of voluntary standards for a
What Is Anticipated Interest? In finance, the term “anticipated interest” refers to the total interest payments expected to be earned over the life of an investment. In the case of debts, anticipated interest refers to the total amount of interest payments expected to be paid on the loan. Investors can increase their anticipated interest income
What Is an Anticipation Note? An anticipation note is a short-term obligation issued to meet temporary financing needs with the expectation that future cash flows will repay the note. Key Takeaways An anticipation note is a short-term obligation for temporary financing with the expectation of repayment via future cash flows.Anticipation notes normally have maturities of
What Is an Anticipatory Breach? An anticipatory breach of contract is an action that shows one party’s intention to fail to fulfill its contractual obligations to another party. An anticipatory breach can end the counterparty’s responsibility to perform its duties. Demonstrating the other party’s intention to breach the contract gives the counterparty grounds for beginning
What Is an Anti-Dilution Provision? Anti-dilution provisions are clauses built into convertible preferred stocks and some options to help shield investors from their investment potentially losing value. When new issues of a stock hit the market at a cheaper price than that paid by earlier investors in the same stock, then equity dilution can occur.
What Is Antidilutive? Antidilutive is a term that describes the effects of certain actions, such as securities retirement, securities conversion, or other corporate actions (e.g., acquisitions made through the issuance of common stock or other securities) on the earnings per share (EPS) or voting power of existing shareholders. Antidilutive activities maintain or increase the voting
