The aim of this OER is to present business finance concepts to students in a clear and accessible way, avoiding an overload of material. Although this resource is written with an Australian perspective and includes Australian examples, its content is designed to be universally applicable. With students from diverse international backgrounds, this resource is intended to be relevant and valuable across various global contexts.

The book is divided into eight chapters, each building on the previous to provide a comprehensive learning journey:

• Chapter 1 lays the groundwork, introducing the basics of financial management including the key areas of financial decision making, the primary objectives of businesses, the agency problem, and the role of corporate governance in aligning management with shareholder interests.
• Chapter 2 explores the risk-return trade-off, a core principle in finance that guides decision-making under uncertainty.
• Chapter 3 delves into the fundamentals of capital budgeting, providing the foundation for evaluating investment opportunities.
• Chapter 4 builds on this, teaching students how to apply various capital budgeting techniques, such as NPV and IRR, in real-world scenarios.
• Chapter 5 introduces the concepts of capital structure and cost of capital, examining how businesses balance debt and equity to optimize their financing mix.
• Chapter 6 focuses on equity financing, highlighting its importance as a critical resource for business growth and sustainability. Various types of equity available to the business as it goes through its life cycle are discussed.
• Chapter 7 discusses the fundamentals of business valuation, enabling students to assess the value of companies and investments accurately.
• Chapter 8 concludes with an examination of dividend payout policy, addressing how businesses determine profit distribution strategies and their implications for stakeholders.

This book is designed to provide a blend of theoretical insights and practical applications, offering students a comprehensive understanding of business finance. Through clear explanations, real-world examples, and problem-solving exercises, students will gain the confidence to analyze and navigate complex financial decisions effectively.