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

Maximizing the present value of free cash flows is a long-term strategy that enhances the company's financial stability and growth prospects, eventually leading to an increase in stock price. On the other hand, focusing on accounting earnings or financial policy may result in short-term gains but does not guarantee sustainable growth in the long run. Therefore, the best course of action is to focus on maximizing the present value of free cash flows.

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