My goal in writing this textbook was to write a concise text, something that is easy for students to comprehend with plenty of examples and exercises, yet a comprehensive book. I hoped to make the topics interesting and applicable in real life in Bangladesh. I tried to present the topics in the book the way I present the topics in class. But, probably the most important goal I had in my mind was write a book that will contain the theory modified in a manner that the concepts and theories will be applicable to Bangladesh businesses. In the process, I made my students at North South University my guinea pigs, who I used to test the untested manuscript and I have to admit that my students had been very gracious. This is the first edition and therefore, I assume that there will be many mistakes left despite all my efforts. I will really appreciate it very much if the readers point out any error they come across and I will do my best to make the correction as soon as possible. I have a commitment to all the users to make the book as error free as possible. The book is designed as an introductory course for all finance students in undergraduate programs in business and as an introductory text for MBA students. This book does contain fairly advanced concepts and can be used in more advance finance courses. It combines the theoretical concepts with practical applications and what is unique in this textbook is that it provides the necessary modifications to make the general theory applicable to the firms in Bangladesh.