What Is the Merton Model? The Merton model is a mathematical formula that stock analysts and commercial loan officers, among others, can use to judge a corporation’s risk of credit default. Named for the economist Robert C. Merton, who proposed it in 1974, the Merton model assesses the structural credit risk of a company by
What Is the Metcalf Report? The Metcalf Report was a critical report on the U.S. accounting profession and the influence of the “Big 8” accounting firms, released in 1976 by Senator Lee Metcalf, who had chaired a U.S. Senate committee that examined the accounting industry. The report’s main focus was on the need for change
What Are Metrics? Metrics are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production. Generally, a group of metrics will typically be used to build a dashboard that management or analysts review on a regular basis to maintain performance assessments, opinions, and business strategies. Understanding Metrics Metrics have been used in
What Is a Multiple Employer Welfare Arrangement (MEWA)? A multiple employer welfare arrangement (MEWA) is a system for marketing health and welfare benefits to employers, for their employees. Also described as a “multiple employer trust (MET),” a multiple employer welfare arrangement happens when a group of employers combines their contributions in a self-contributing benefits plan
What Is Mezzanine Debt? Mezzanine debt occurs when a hybrid debt issue is subordinated to another debt issue from the same issuer. Mezzanine debt has embedded equity instruments attached, often known as warrants, which increase the value of the subordinated debt and allow greater flexibility when dealing with bondholders. Mezzanine debt is frequently associated with
What Is Mezzanine Financing? Mezzanine financing is a hybrid of debt and equity financing that gives the lender the right to convert the debt to an equity interest in the company in case of default, generally, after venture capital companies and other senior lenders are paid. In terms of risk, it exists between senior debt
What Is the Money Flow Index (MFI)? The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100. Unlike
What Is Married Filing Jointly? Married filing jointly is a filing status for married couples, allowing them to file joint tax returns. When filing taxes under married filing jointly status, a married couple can record their respective incomes, deductions, credits, and exemptions on the same tax return. Married filing jointly is often the best choice when only
What Is Medicare Advantage? Medicare Advantage (MA) is a Medicare plan offered by private insurers who contract with the program. Medicare Advantage plans, also known as Medicare Part C, provide hospital, outpatient, and, usually, prescription drug coverage, supplanting benefits under Medicare parts A, B, and D. Anyone who joins an MA plan still has Medicare
What Is the Medicare Hold Harmless Provision? The Medicare hold harmless provision limits the annual rise in Medicare Part B premiums deducted from Social Security benefits to no more than the cost of living increase provided to the beneficiary in a given year. This ensures that the dollar amount of the Social Security benefits paid
