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Glossary of Terms
Recasting |
Financial
recasting eliminates from the historical financial
presentation, items such as excessive and
discretionary expenses and nonrecurring revenues and
expenses, since they reflect the financing decision
of the current owner and may not represent financing
preferences of a new owner. Recasting provides an
economic view of the company, and allows meaningful
comparisons with other investment opportunities.
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Recast
Book Value |
The value
of a balance sheet item (asset, liability, or
equity) after recasting adjustments have been made.
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Representation |
A
statement or condition made that something is true
or accurate.
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Return on
Investment (ROI) |
The rate
of return at which the sum of the discounted future
cash flows for the five pro forma years plus the
discounted residual value equals the initial cash
outlay.
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