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Home > QFINANCE Dictionary > Definition of discount allowed

Definition of

discount allowed

Business

amount of seller's price reduction the amount by which the seller agrees to reduce his or her price to the customer

discount allowed - Related Articles
  • Discounted Cash Flow

    Calculations

    Discounted cash flow (DCF) is a way of measuring the net present value (NPV) of future cash flow. This allows companies to express the value of an investment today based on predicted future returns. The idea behind discounted cash flow is that $1 today is worth more than $1 you might receive

  • Using Multistage Dividend Discount Models

    Checklists

    This checklist outlines the main uses of multistage dividend discount models and considers their advantages and disadvantages over standard dividend discount models.

  • Understanding the Relationship between the Discount Rate and Risk

    Checklists

    The relationship between the discount rate and risk needs to be considered when performing a DCF analysis because any adjustment of the discount rate needs to allow for risk in future cash flows, and investors need to understand the trade-off between the amount of risk and expected future returns. A

  • Valuation and Project Selection When the Market and Face Value of Dividends Differ

    Best Practice

    One solution to the problem is to make the discounted values for prices and dividends consistent by adjusting the discount rate. For example, the capital asset pricing model or CAPM, a popular model for estimating discount rates, can be extended to allow for differential taxation of dividends
    By Graham Partington

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Definitions of ’discount allowed’ and meaning of ’discount allowed’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’discount allowed’ and other financial terms with our online QFINANCE Financial Dictionary.

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