variable

  

Definition

Characteristic, number, or quantity that increases or decreases over time, or takes different values in different situations. Two basic types are (1) Independent variable: that can take different values and can cause corresponding changes in other variables, and (2) Dependent variable: that can take different values only in response to an independent variable.

Featured Tip

What Counts Most in a Merger

The language utilized in mergers tends to confuse the issues and encourage irrational actions by managers. For example, dilution is usually carefully calculated on a pro forma basis for both book value and current earnings per share. Particular emphasis is given to the latter item. When that calculation is negative (dilutive) from the acquiring company's standpoint, a justifying explanation will be made (internally, if not elsewhere) that the lines will cross favorably at some point in the future. The attention given this form of dilution is overdone: current earnings per share (or even earnings per share of the next few years) are an important variable in most business valuations, but far from all powerful. What really counts is whether a merger is dilutive or anti-dilutive in terms of intrinsic business value (a judgment involving consideration of many variables).

News containing the term variable

Loading...



http://www.businessdictionary.com/definition/variable.html


Enter your email address to get our free Term of the Day newsletter!

variable is...

Nearby Terms

Popular 'Statistics, Mathematics, & Analysis' Terms

Search volume for variable

Browse by Letter: # 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