Business / Taxes / Cap: A cap is a ceiling, or the highest level to which something can go. For example, an interest rate cap limits the amount by which an interest rate can be increased over a specific period of time. A typical cap on an adjustable rate mortgage (ARM) limits interest rate increases to two percentage points annually and six percentage points over the term of the loan. In a different example, the cap on your annual contribution to an individual retirement account (IRA) is $4,000 for 2006 and 2007 and $5,000 in 2008, provided you have earned at least that much. If you're 50 or older, you can make an additional catch-up contribution of $1,000 each year.
Cap Noun Synonyms: hat, head covering
Cap Verb Synonyms: surpass, outdo, outstrip, better, beat, exceed, top, excel
Business / Finance / Perfect Market View (Of Capital Structure): Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market. MORE
Business / Finance / Long-Term Debt As A Percent Of Total Capital: Long-term debt including capitalized leases expressed as a percentage of total capital (common and preferred stock plus long term debt). It reflects the use of leverage by the company. MORE