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1)a paper in which you explain the concept of the time value of money. In a 250 words, explain the concept of time value of

1)a paper in which you explain the concept of the time value of money.In a 250 words, explain the concept of time value of money, including compounding and discounting. Consider how time value of money applies to your personal life by addressing the following:

  • Describe at least one specific personal situation in the past where the use of time value of money concepts would have helped you make a better decision. Explain how time value of money applies to this situation.
  • Describe at least one specific personal situation that you expect to encounter in the future where you will use time value of money concepts to help you make a better decision. Explain how time value of money applies specifically to this situation.

2) A close friend of your father has a medium-sized firm with about 400 employees. You overheard him mention to your father that he was considering "taking the firm public" in order to access more money for expansion. He suggested your father invest in the company at that time. Since you are a finance major your father asked you later what you thought about the opportunity and exactly what was involved in "taking the firm public."

Step 2

Answer the questions related to the scenario.In a 250 words, accomplish the following:

a summary for your father that explains the process involved in "taking a firm public" and issuing common stock that will then be traded on an organized exchange. Help him to understand the benefits and/or drawbacks associated with this action.

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