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Discuss the firm stock price from a current level

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Reference no: EM131559008

Question: Should stockholder wealth maximization be thought of as a long term goal 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 action that might have these general tendencies?

Reference no: EM131559008

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