Business Essentials, 12/e

Questions & Exercises

Questions For Review

1. 17-1. Explain the concept of the time value of money.

2. 17-2. Would you rather buy individual stocks or invest in mutual funds? What is the difference, and why would you favor one over the other?

3. 17-3. What is a corporate bond? Why would a company use bonds as a source of financing?

4. 17-4. How does the market value of a stock differ from the book value of a stock?

5. 17-5. How do firms meet their needs through debt financing and equity financing?

Questions for Analysis

1. 17-6. Research several stocks online. You will notice that they continually fluctuate in price. What might be the reason for this? Is a ...