Chapter 1
The Tale of Corporate Finance
IN THIS CHAPTER
Understanding the meaning of money
Looking at the study of corporate finance
Seeing the role corporate finance plays in your life
Making corporate finance work for you
Corporate finance is more than just a measure of money. As you see in this chapter, money is incidental to finance. When discussing corporate finance, we are actually looking at the entire world in a new way — a way that measures the entire universe and the things within it in a way that makes it useful to us. We can calculate things in terms of corporate finance that simply can’t be accurately measured in any other way. Throughout this chapter we talk about the nature of money and how it applies to corporate finance.
Telling a Story with Numbers
Corporate finance is the study of relationships between groups of people that quantifies the otherwise immeasurable. To understand how this definition makes any sense at all, first you have to take a quick look at the role of money in the world.
According to Adam Smith, an 18th century economist, the use of money was ...
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