Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• CAPITALIZATION
  
  1. The process of imputing a value to an income stream by dividing the annual net income before income taxes and depreciation by a rate of return expressed as a decimal. This process is used in real estate lending and appraisals. 2. The total of, or the mix between, a corporation’s shareholders’ equity and its long-term debt. 3. The process of reflecting a long-term, noncancelable lease on the lessee’s balance sheet.
  
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