Week 2 DQ - manager should focus on the things that will...

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I agree with the statement that “managers should not focus on the current stock value”, but not because I think it will lead to an overemphasis on short-term profits at the expense of long-term profits. In fact, I don't think that the current stock value of most companies is only directly tied to their short-term profits. Most of the time, the value of a stock has to do with a combination of earnings (both long-term and short-term) dividends, debt, etc. So, rather than focus on the price of the stock at all, a good
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Unformatted text preview: manager should focus on the things that will keep the business profitable. If the earnings are there, the stock price will reflect that, both now and in the future. That being said, I don't think most managers adhere to this philosophy. Many of them seem to be short-sighted and make knee jerk reactions that satisfy the needs of the company's near future....
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