The first thing to be instructed in theory education is where the theory stands. We must make it clear upfront where a particular finance theory fits within the framework of financial decision-making. Students should be informed of what specific question(s) the theory addresses. How should assets be valued? How should investment decisions be made? What is the cost of capital to be used for capital budgeting? How much debt should the firm employ? Why should price changes be random in an efficient market? What dividend policy is most appropriate?