You are the CEO of a technology company. You want to increase the firm's stock price as much as possible.

(a) You have convinced the stock analysts that your company has extremely profitable investment opportunities, but you know that this is not the case. You would like to keep the firm's stock price up at least until you retire so that you can sell your shares profitably. Should you pay earnings out to shareholders or retain them?

(b) Are your actions in part (a) in the long-run interests of shareholders?