ECONOMIC EXPOSURE Definition

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ECONOMIC EXPOSURE, in foreign exchange, is the extent to which the value of the firm, as measured by the present value of all expected future cash flows, will change when exchange rates change.

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REPOSSESSION is the action of regaining possession, e.g. the seizure of collateral securing a loan that is in default.

SUSTAINING CAPITAL REINVESTMENT is the periodic capital outlay required to maintain operations at existing levels, net of the tax shield available from such outlays.

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