EARNING POWER Definition

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EARNING POWER is earnings before interest and taxes [EBIT] divided by total assets.

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FIXED DEPOSIT is a specific sum of money deposited in a financial institution for a fixed term earning a pre-agreed interest rate.

TEASER RATE, in lending, is the initial rate set on adjustable-rate mortgages (ARMs) by the lender to attract prospective borrowers. It is the coupon rate an investor earns in the first year.

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