Financial Theory and Corporate Policy

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This 23 page paper examines a range of different financial theories which are used in terms of investment and corporate financial decision-making. The paper looks at investment decisions under certainty, utility theory given uncertainty, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), Efficient Market Hypothesis (EMH), dividend policies and the way that issues can be applied in corporate finance including equity arbitrage theory. The bibliography cites 19 sources.