This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is the stock price of a company an indication of the performance of that company's senior managers? (Read 151 times)

notis

  • Hero Member
  • *****
  • Posts: 596
on: Jul 9, 2019
Why is the stock price of a company an indication of the performance of that company's senior managers?
◦ Investors who can see that a company is well-run will hold on to their shares, even if the company faces temporary set-backs, since they know that the stock price will likely rise again.
◦ In general, people want to invest in a well-managed corporation, which will drive up the price of shares.
◦ Larger companies tend to be better run and so have higher stock prices.
◦ Well-run companies are invariably highly profitable, which leads to a higher share price.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by notis on Jul 9, 2019

micaelaswann

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


notis

  • Member
  • Posts: 596
Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

dyrone

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Meta-analysis of 18 studies shows that aerobic exercise causes better performance in older adults on Meta-analysis of 18 studies shows that aerobic exercise causes better performance in older adults on
Group fitness activities geared toward senior citizens can improve their physical strength and ... Group fitness activities geared toward senior citizens can improve their physical strength and ...
Effects of Retrieval Practice on Predicted and Actual Memory Performance Effects of Retrieval Practice on Predicted and Actual Memory Performance
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Chiropractor (stock image) Chiropractor (stock image)
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Contraction cycle of a sarcomere

For a complete list of videos, visit our video library