accounting exposure See translation exposure.
accounts payable Cash owed by a firm to its suppliers for purchases made on credit and not yet paid; reported in the firm's balance sheet as a current liability. Also known as payables and trade creditors.
accounts receivable Cash owed to a firm by its customers for sales made on credit and not yet paid; reported in the firm's balance sheet as a current asset. Also known as receivables and trade debtors.
adjusted present value (APV) A valuation method according to which the value of a firm's assets is equal to the sum of (1) their value, assuming that they are financed only with equity capital (unlevered value), and (2) the present value of the tax savings provided by the portion of the assets financed with debt.
ad valorem duty A cross-border tax or customs duty levied as a percentage of the assessed value of goods entering a country.
after-tax cost of debt The cost of the debt component in the firm's cost of capital. It is calculated as: (Pretax cost of debt) × (1 – Marginal corporate tax rate).
agency problem Governance problem arising from the separation of ownership and control of a firm.
algorithmic trading Trading conducted by computer models rather than by human traders. With foreign exchange widely considered as an asset class, hedge funds and other institutional investors are increasingly relying on automated trading models that seek and act instantly on market opportunities to generate alpha.
all in cost The percentage ...