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Category > Business & Finance Posted 18 May 2017 My Price 5.00

Should stockholder wealth maximization be thought of as a long-term or a short-term goal?

1. In general terms, how is value measured? What are the three factors that determine value? How does each factor affect value?

2. Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action would probably increase the firm’s stock price from a current level of $20 to $25 in six months and then to $30 in five years, but another action would probably keep the stock at $20 for several years but then increase it to $40 in five years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies?

Answers

(8)
Status NEW Posted 18 May 2017 10:05 AM My Price 5.00

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file 1495104670-Answer.docx preview (231 words )
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