EUROIZATION Definition

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EUROIZATION is the use of the euro by a country as its own currency; the linking of a currency's value to that of the euro; or, the use of the euro for accounting purposes.

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SALES MULTIPLE is the most widely used valuation benchmark used in the valuation of a business. The information needed are annual sales and an industry multiplier, which is usually a range of .25 to 1 or higher. The industry multiplier can be found in various financial publications, as well as analyzing sales of comparable businesses. This method is easy to understand and use. The sales multiple is often used as the valuation benchmark.

DURATION, in securities, is a measure in years of interest rate risk for a specific security or portfolio. Duration is the weighted average time to receive the present value of cash flows from a specific security or portfolio. When the duration is divided by the discount rate plus one, the resulting modified duration measures the sensitivity of a bond to changes in interest rates. Used by bond managers instead of maturity as it accounts for all principal and interest cash flows in addition to the final maturity payment. For example, the duration of a 10-year zero-coupon bond equals its maturity of 10, while the duration of a 10-year 7.5% coupon bond is less than seven years.

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