Extra Credit Essays

1) Explain why maximizing the value of the firm’s stock is the primary objective for business management. Discuss the types of obstacles a business manager may face in realizing this objective. What role does a company’s cash flow play in the valuation of a company’s stock?

2) Explain what the “Time Value of Money” is and why it is so important in the field of finance. Provide examples of how this concept is applied in regular financial decision making.

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