Ability To Pay

Business / Finance / Ability To Pay: Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio. In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values. In context of taxation, notion that tax rates should be determined according to income or wealth.

Other Words for Ability

Ability Noun Synonyms: adeptness, aptitude, facility, faculty, capacity, power, knack, proficiency, know-how
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Other Words for Pay

Pay Noun Synonyms: recompense, compensate, remunerate, reward, indemnify, repay, refund, reimburse, pay off, pay out, pay up, satisfy, clear, remit, discharge, liquidate, settle, honor, meet
Pay Verb Synonyms: extend, bestow, transmit, pass on, give, deliver
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Liability Insurance

Business / Debt / Liability Insurance: Insurance against legal liability to pay compensation and court costs where the insured has been found negligent in respect of injuries sustained by another person or damage to his/her property. MORE

Dividend Payout Ratio

Business / Accounting / Dividend Payout Ratio: A measure of the percentage of earnings paid out in dividends: computed by dividing cash dividends by the net income available to each class of stock. MORE

Preference Stock

Business / Finance / Preference Stock: A security that ranks junior to preferred stock but senior to common stock in the right to receive payments from the firm; essentially junior preferred stock. MORE

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