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Unformatted text preview: efits associated with a
decision have already been identified. With that task done, the financial manager’s job
is to compare the costs and benefits and determine the best decision to make for the
value of the firm. Your Personal Financial Decisions
While the focus of this text is on the decisions a financial
manager makes in a business setting, you will soon see
that concepts and skills you will learn here apply to personal decisions as well. As a normal part of life, we all
make decisions that trade off benefits and costs across
time. Going to university, purchasing this book, saving
for a new car or house down payment, taking out a car
loan or home loan, buying shares of stock, and deciding Concept
03_ch03_berk.indd 68 between jobs are just a few examples of such decisions
that you have faced or could face in the not-too-distant
future. In this chapter, we develop the Valuation Principle
as the foundation of all financial decision making—
whether in a business or in a personal context—and
begin to show how it is a unif...
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This note was uploaded on 02/07/2014 for the course MIS 304 taught by Professor Mejias during the Spring '07 term at University of Arizona- Tucson.
- Spring '07