Glossary
Abandonment value: The value of a project after its assets are sold externally.
ABC method of inventory management: Expensive items of inventory are more closely controlled than the less expensive items.
Accounting rate of return: Accounting profit divided by some measure of investment.
Accounts receivable: It is a current asset arising out of credit sales.
Accrued expenses: Expenses owed but not yet paid.
Adjusted present value: A sum of project’s discounted cash flows (assuming all-equity financing) and the value of any tax-shield benefit of interest related to project financing minus floatation cost, if any.
Agency problem: Problems arising out of separation of ownership from control. It is manifest in managerial decisions not being ...
Get Fundamentals of Financial Management, Third Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
