practices of the past. This text emphasizes the modernist movement in finance which is based on systematic methodology with an emphasis on deductive reasoning and empirical validation. The modernist movement produces a market value based approach to finance that emphasizes shareholder wealth maximization, options, and agency relationships. This movement has, without question, expanded the frontiers of knowledge in finance. Until this text, instructors have lacked a framework from which to teach these concepts at the introductory level. Realistic exercises and examples make the theoretical material relevant to students.

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