If a manager wishes to raise his stock's price,he should do which of the following? I.Focus on maximizing the present value (PV)of the free cash flow.
II Focus on accounting earnings.
III)Focus on financial policy.

Question

Quizplus · Accepted Answer

Focusing on maximizing the present value (PV) of the free cash flow is one of the most effective ways for a manager to increase the stock's price. This is because an increase in the PV of the free cash flow signifies that the company is generating more cash, which can be reinvested to generate further growth. Accounting earnings can be manipulated and may not accurately reflect the company's financial health, and focusing on financial policy alone may not necessarily result in an increase in stock price.

If a Manager Wishes to Raise His Stock's Price,he Should