|
|
Adjusted present value (APV) |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout.Adjusted present value (APV) Similar MatchesRisk adjusted returnRisk adjusted returnReturn earned on an asset normalized for the amount of risk associated with that asset. Adjusted gross incomeAdjusted gross incomeIn the US, a person's income on which federal income tax is calculated. This is gross income less adjustments such as Individual Retirement Account, Simplified Employee Pension Plan, Keogh Plan and alimony payments but before itemised deductions such as state and local income taxes, interest expenses and medical expenses. Risk adjusted returnRisk adjusted returnOften we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance. Adjusted balance methodAdjusted balance methodMethod of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method. Adjusted for inflationAdjusted for inflationCorrected for price changes to yield an equivalent in terms of goods and services. The adjustment divides nominal amounts for different years by price indices for those years -- e.g. the CPI or the implicit price deflator -- and multiplies by 100. This converts to real values, i.e. valued at the prices of the base year for the price index. Further SuggestionsAdjusted Gross Incomeadjusted earnings Adjusted debit balance (ADB) Seasonally adjusted Adjusted exercise price Inflation adjusted Net adjusted present value Adjusted basis Risk adjusted discount rate Adjusted gross income (AGI) Risk adjusted profitability |
|
|
|