This unit provides an introduction to the fundamental theories, principles and techniques of managerial finance. It addresses the investment, financing, and dividend decisions made by managers. Fundamental concepts such as the time value of money and the valuation of a variety of securities are addressed first, followed by investment decisions. These include capital budgeting, portfolio theory, and the capital asset pricing model. Financing decisions such as capital structure and current asset management follow, as do dividend policy and consideration of takeovers. The unit is rounded out with an introduction to the concept of market efficiency and the developing field of behavioural finance.