Problem
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 $20 to $25 in six months and then to $30 in five years, but another action would probably keep the stock at $20 for several years, but then increase it to $40 in five years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies?