Need help with answering to finance question

Aug 19th, 2015
Business & Finance
Price: $10 USD

Question description

Should shareholder 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 and then to $30 in 5 years --- but another action would probably keep the stock at $20 for several years but then increase it to $40 in 5 years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies?

Tutor Answer

(Top Tutor) Daniel C.
School: Duke University

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Aug 20th, 2015
"Thanks, good work"
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