Which of the Following Should Be Done by a Manager

question 17

Multiple Choice

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.

• A) I only
• B) II only
• C) I and II
• D) II and II

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Definitions:

Slope

The measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change.

Budget Constraint

Represents the combinations of goods and services a consumer can purchase with their income at current prices.

Prices

The amount of money or exchange value that is asked for goods and services in the market.

Monthly Income

The total amount of income received on a monthly basis from all sources including wages, salaries, benefits, and investments.