Intro to Finance (NT)Fall 2011

Intro to Finance (NT)Fall 2011 - IntroductiontoFinance FIN...

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Introduction to Finance FIN 357 Business Finance
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History of Finance Unlike many areas of business, finance is in its infancy. The major theories of finance were established during the last 60 years. The theory of finance originated in the 1950’s with the work of Markowitz, Modigliani, Miller, and others.
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Definitions of Finance The theory of finance is concerned with how individuals and firms allocate resources through time. Finance considers the acquisition of funds, their investment, and their return to the original suppliers. Finance is “business arithmetic.”
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The “real” world is complex and its complete description is impossible. Theories attempt to capture the “essence” of our environment by using simplifying assumptions to explain reality. Financial theory enables us to study essential concepts and elements of reality. Financial theory enables us make sense
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Intro to Finance (NT)Fall 2011 - IntroductiontoFinance FIN...

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