|  |  | 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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