ADJUSTABLE RATE MORTGAGE Definition

ADJUSTABLE RATE MORTGAGE (ARM) is A mortgage that features predetermined adjustments of the interest rate at regular intervals. An ARM's interest rate is tied to an index outside the control of the lender.

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WEIGHTED AVERAGE COST OF CAPITAL (WACC) is an average representing the expected return on all of a companys securities. Each source of capital, such as stocks, bonds, and other debt, is weighted in the calculation according to its prominence in the companys capital structure.

PRICE TO BOOK is a financial ratio that is derived by dividing a stock's capitalization by its book value. Also called Market-to-Book.

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