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L01A Topic 1
L01A Topic 1
Financial Management I
Topic 1: Introduction to
Financial Management
• Partnership
– Business owned by two or more people acting as partners.
• Company
– Separate legal entity formed under the Corporations
Act 2001.
• Dividend distributions.
• Value
– The value of a company (V ) on the financial markets may
be expressed as:
V DE
where D the value of debt
E the value of equity
– In a company setting:
The agents are usually managers.
The principals are usually shareholders.