Finance is the study of value and how it is determined. Individuals, small businesses and corporations regularly make use of value determinations for making strategic decisions that affect the future outcomes oftheir endeavors. The importance of
accurate valuations cannot be overestimated; valuing assets too highly
will lead to investing in assets whose costs are greater than their
returns, while undervaluing assets will lead to missed opportunities
for growth. In some situations (such as a merger or an acquisition), the outcome ofthe decision can make or break the investor. The need for solid financial skills has never been more pressing than in today’s global economy.
TheFundamentalPrinciplesofFinanceoffers a new and innovative approach to financial theory. The book introduces three fundamentalprinciplesoffinance that flow throughout thetheoretical material covered in most corporate finance textbooks. These fundamentalprinciples are developed in their own chapter ofthe book, then referred to in each chapter introducing financial theory. In this way, thetheory is able to be mastered at a fundamental level. The interactions among theprinciples are introduced through the three precepts, which help show the impact ofthe three principles on financial decision-making.
This fresh and original approach to finance will be key reading for undergraduate students of introduction to finance, corporate finance, capital markets, financial management and related courses, as well as managers undertaking MBAs.