Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CAPITALISM

A business simulation computer game first published in 1995 by Interactive Magic, developed by Enlight for the Macintosh and MS-DOS and designed by Trevor Chan.

CAPITALIZATION (CAP)

Writing a word with its first letter as a majuscule (upper-case letter) and the remaining letters in minuscules (lower-case letters), in those writing systems which have a case distinction.

CAPITALIZATION FACTOR

Any multiple or divisor used to convert anticipated economic benefits of a single period into value.

CAPITALIZATION OF EARNINGS

A method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. The capitalization of earnings estimate is done by taking

CAPITALIZATION OF PROFITS

Converting a company’s retained earnings, which represent the profits held in the business over time, to capital.

CAPITALIZATION RATE

For example, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net operating income (the amount left over after fixed costs and variable costs are subtracted

CAPITALIZATION RATIOS

Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity.

CAPITALIZATION TABLE

A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source – long-term debt and common equity – and the respective capitalization ratios.

CAPITALIZE

With certain loans, such as subsidized FFEL Loans, the U.S. Department of Education pays the interest that accrues on these loans while the student is enrolled at least halftime and during periods

CAPITALIZED COST

This is the total selling price of the vehicle you are leasing. There are other fees included like taxes, license fees, and title and acquisition fees.

CAPITALIZED INTEREST

Interest cost incurred during the time necessary to bring an asset to the condition and location for its intended use and included as part of the historical cost of acquiring the asset.

CAPITALIZED VALUE

Market capitalization/capitalisation (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued,

CAPITATED CONTRACT

A healthcare plan that allows payment of a flat fee for each patient it covers. Under a capitation, an HMO or managed care organization pays a fixed amount of money for its

CAPITATION

A fee, charge or a tax that is levied on a per person basis.

CAPITATION PAYMENTS

Used in the Prepaid or Dental Health Maintenance Organization (DHMO) environment, this amount is paid to each general dentist proportionate to the number of members who have selected him/her as their primary

CAPRICIOUS

Given to sudden and unaccountable changes of mood or behavior.

CAPSULE HOTEL

Japanese accommodation, initially intended for executives, tiny capsules are about 2 meters long by 1.50 wide.

CAPTIVE

A vehicle established as an authorized INSURER or REINSURER that is used to facilitate a company

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