CHAPTER 3

What is the financial manager’s job in relation to the firm’s investors?

What is the principle behind good financial decisions?

What disciplines are involved in quantifying costs and benefits?

What must the financial manager do after identifying costs and benefits?

What does a larger quantity not necessarily mean in terms of income?

What is a competitive market?

What is the valuation principle?

What is arbitrage?

What is the time value of money?

What is the interest rate factor for cash flows?