Managers should assess whether their company's share price has deviated more than 5 percent from its fundamental value on a weekly basis and,if it has,take appropriate action such as issuing or buying back shares.

Question

Quizplus · Accepted Answer

Managers should look to the long-term behavior of a company’s share price, not whether it is 5 or 10 percent undervalued this week.

Managers Should Assess Whether Their Company's Share Price Has Deviated