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.