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8/21/201411Chapter 01Introduction toFinancial Management** Need TVM computation ability next lecture!What is Finance?•Financeapplies specific value to–things owned–services used–decisions made•Financial management–organization’s approach to valuation1-2•Stocks, bonds•Mortgage payments•Companies•Projects•Business decisions
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8/21/20142Economic Participants•Two dimensions–Participants with “extra” investment money –Participants with economically viable ideas1-3•Type 1 Participants–Do not lend or spend in business context–No direct role in financial markets–Indirect role: to provide labor and consume productsEconomic Participants 1-4