Question: 1. Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits

1. Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.

2. How do financial cash flows and the accounting statement of cash flows differ? Which is more useful for analyzing a company?

3. Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why?

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