CAPITALIZED Definition

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CAPITALIZED is when something is recorded as an asset. For example, a capitalized lease is in substance a purchase to the lessee. An asset is recorded equal to the present value of the lease payments, which is also recorded as a liability. Payments, partly interest and partly principal, are made on the lease liability. The leased asset is depreciated by the lessee as though it were legally owned by the lessee.

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TIMES FIXED CHARGES EARNED see COVERAGE OF FIXED CHARGES.

REMARKETED PREFERRED STOCK is a preferred stock issues­-auction-rate preferred stock, e.g., where the dividend is set by a single marketing agent rather than through a Dutch Auction process.

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