Page 20 - New Employee Glossary

Glossary 20

Diluted Earnings Per Share (EPS)

The earnings per share (EPS) if all convertible securities were exercised. In other words,
diluted earnings consider if all warrants, stock options, and convertible bonds were traded in
for stock. This would result in an increased number of shares outstanding. Net income
divided by diluted shares.

Dimension

A dimension can be thought of as a way to describe your data in Hyperion. The dimensions
differ by Hyperion cube. Dimensions in a specific cube may include things such as Account,
Cost Center, Entity, Reported, Period, Currency, etc.

Directions for Handling & Administration (DHA)

Written instructions to the clinical sites on the handling, preparation, dosing and
administration of the study drug.

Discount Factor

Also known as discount rate. The interest rate charged to commercial banks and other
depository institutions for loans received from the Federal Reserve Bank’s discount window.
The discount rate also refers to the interest rate used in discounted cash flow (DCF) analysis
to determine the present value of future cash flows. A third meaning of the term “discount
rate” is the rate used by pension plans and insurance companies for discounting their
liabilities.

Discount Rate

The rate used to discount cash flows to today, typically the weighted average cost of capital
(see WACC definition).

Discounted Cash Flow (DCF)

A valuation method used to evaluate the attractiveness of an investment opportunity. A
discounted cash flow (DCF) analysis discounts projected free cash flows at the weighted
average cost of capital (see WACC definition) to arrive at a net present value (see NPV
definition) estimate for an investment. If the NPV of a project is positive, net of all
investment costs, it is considered value creating.

Discovery Leadership & Governance Team (DLGT)