Maximizing stock prices does not make sense because investors focus on short-term results and not on the long-term consequences. Comment.
Answer to relevant QuestionsThere are some corporate strategists who have suggested that firms focus on maximizing market share rather than market prices. When might this strategy work, and when might it fail? The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period Year Price (dollars) 1989 .......... 1.20 1990 .......... 2.09 1991 ...Unicom is a regulated utility serving Northern Illinois. The following table lists the stock prices and dividends on Unicom from 1989 to 1998. a. Estimate the average annual return you would have made on your investment. b. ...You have collected returns on AnaDone, a large diversified manufacturing firm, and the NYSE index for five years: a. Estimate the intercept (alpha) and slope (beta) of the regression. b. If you bought stock in AnaDone today, ...As the result of stockholder pressure, RJR Nabisco is considering spinning off its food division. You have been asked to estimate the beta for the division and decide to do so by obtaining the beta of comparable publicly ...
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