This book deals with major financial decisions managers of the modern corporation are faced with. It uses financial theory and contemporary research to discuss strategies for handling these decisions. The book gives a background to financial theory and its main assumptions concerning for example rationality and market efficiency. At the same time it discusses how well financial theory fits to real-world financial decision making of business managers. How rational is management, what attitudes towards risk do they have, and is risk and return the only two issues management consider when making decision? The book takes on a managerial perspective on decision-making and discusses potential differences in how managers and shareholders view the running of the company and its financial policies. It also discusses the system under which companies are controlled and governed, and strategies under which shareholders can influence management in efficient ways.