INVESTED CAPITAL Definition

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INVESTED CAPITAL is the sum of equity and debt in a business enterprise. Debt is typically a) long-term liabilities or b) the sum of short-term interest-bearing debt and long-term liabilities. When the term is used, it should be supplemented by a definition of exactly what it means in the given valuation context.

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CONTRACT RATE OF INTEREST is the interest rate specified in a contract.

INFLATION HEDGE is a defensive investment that protects against the risk of loss caused by inflation. Tangible investments such as gold, silver and precious gems and coins are inflation hedges.

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