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Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action would probably increase the firm's stock
Should stockholder wealth maximization be thought of as a long-term or a short-term goal?
For example, if one action would probably increase the firm's stock price from a current level
of Tk.20 to Tk.25 in six months and then to Tk.30 in five years, but another action would
probably keep the stock at Tk.20 for several years but then increase it to Tk. 40 in five years,
which action would be better? Can you think of some specific corporate actions that might
have these general tendencies?
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