Secured Loans
EBT
See: Earnings Before Taxes
Economic assumptions
Economic environment a firm expects to operate in over the life of the financial
plan.
Economic defeasance
See: in-substance defeasance.
Economic dependence
Exists when the costs and/or revenues of one project depend on those of
another.
Economic earnings
The real flow of cash that a firm could pay out forever in the absence of any
change in the firms productive capacity.
Economic exposure
The extent to which the value of the firm will change because of an exchange
rate change.
Economic income
Cash flow plus change in present value.
Economic order quantity (EOQ)
The order quantity that minimizes total inventory costs.
Economic rents
Profits in excess of the competitive level.
Economic risk
In project financing, the risk that the projects output will not be salable at a price
that will cover the projects operating and maintenance costs and its debt service
requirements.
