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inheritance tax (H2)<br />A tax on WEALTH transferred after the decease of an individual person. This tax aims to raise revenue and bring about an intergenerational shift in wealth distribution. Inheritance taxes have long had their advocates, e.g. John Stuart MILL, as a major method of reducing INEQUALITY in society.
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<strong>Consolidation</strong> – The combining of existing federal student loans into one new loan with an interest rate equal to the weighted average of the loans being consolidated. Consolidation can result in lower monthly payments but higher total debt.
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price-earnings ratio (G1)<br />The ratio of the market buying price of a share to its earnings per share. The Financial Times calculates this net of corporation tax and unrelieved advance corporation tax. A ratio for a company higher than that of other companies in the same sector reflects the market's belief that its earnings are expected .to grow more rapidly, and conversely if this ratio is low. It is difficult to use this ratio to make international comparisons of the value of companies as earnings are measured differently from country to country, e.g. more conservatively in Germany and Japan for taxation reasons.<br /><em>See also:</em> cash-price-earnings ratio
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