Explain what is meant by the term time value of money

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Reference no: EM131558743

Essay Questions:

1- If Google doesn’t pay a dividend, why is its stock worth over $650 per share?

2- Why invest in a portfolio of stocks instead of just one?

3- Explain what’s meant by the term “Time Value of Money”?

4- Explain why WACC would effect a firm’s stock price.

5- What effect does borrowing have on a firm’s WACC?

6- What does the Security Market Line represent?

7- Discuss what diversification does and how it works.

Reference no: EM131558743

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