Lorenzolxb1917 Lorenzolxb1917
  • 11-02-2020
  • Business
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A firm's net income is the most appropriate measure to determine whether the management is maximizing the firm's stock price. True False

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PiaDeveau PiaDeveau
  • 11-02-2020

Answer:

FALSE

Explanation:

Net Income is a symbol of companies' profit during the particular accounting year, it also shows the money a firm has to distribute among shareholders.  

the stock price is a practical perspective for management. Maximization of stock prices allows administrators to take major decisions that increasing stockholder income.

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