This text helps students connect financial theory to real-world situations using five core principles:
• The time value of money
• The risk-return tradeoff
• Cash flows as the foundation of value
• Market prices reflecting information
• Responses to incentives
It integrates contemporary case examples and learning features like margin glossaries, “Finance in a Flat World” and “Business of Life” boxes to highlight international and personal finance relevance. Chapters include checkpoint worked examples, concept checks, and appendices introducing tools like financial calculators and spreadsheet use for decision-making.
