Fair Value: The rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades to their customers.

 

Related Words

Fair Value: The rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and provide service upgrades t . . . View Full Definition

Value-Added Tax: A manager who seeks to buy stocks that are at a discount to their 'fair value' and to sell them at or in excess of that value. Often a value stock is one with a low price-to-book value ratio . . . View Full Definition

Fair-And-Equitable Test: In the context of futures, the equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry ra . . . View Full Definition

Par Value: Par value is the face value, or named value, of a stock or bond. With stocks, the par value, which is frequently set at $1, is used as an accounting device but has no relationship to the act . . . View Full Definition

Present Value Factor: Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].

Present Value Of $1: The value today of $1 to be received or paid at some future date given a specified interest rate.

Present Value: The present value of a future payment, or the time value of money, is what money is worth now in relation to what you think it'll be worth in the future based on expected earnings. For examp . . . View Full Definition

Par Value Of Currency: The official exchange rate between two countries' currencies.

Parity Value: Related: Conversion value

Present Value Of An Annuity: The value today of a series of equally spaced, equal-amount payments to be made or received in the future given a specified interest rate.