1.2 Why Study Finance? How to be ready for studying finance Five principles of finance Cash flow is what matters Money has a time value Risk requires a reward Market price are generally right Conflicts of interest cause agency problem (Refer to chapter 1 of book:Foundations of finance 7e by Keown.Martin.Petty,Pearson publishing house. THE COURSE OF FINANCE 2017 SPRING 161.2 Why Study Finance?  How to be ready for studying finance  Five principles of finance  Cash flow is what matters  Money has a time value  Risk requires a reward  Market price are generally right  Conflicts of interest cause agency problem (Refer to chapter 1 of book: Foundations of finance 7e by Keown.Martin.Petty, Pearson publishing house. ) THE COURSE OF FINANCE 2017 SPRING •16