Which of the following should be done by a manager wishing to raise his stock's price?
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 (PV) of the free cash flow is a key factor in increasing a company's stock price. Accounting earnings can be manipulated and do not necessarily reflect the true financial health of the company. Financial policy is important but is secondary to maximizing free cash flow.

Which of the Following Should Be Done by a Manager