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Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a firm`s stock price from a current level of $20 to $25 in 6 months and then to $30 in 5 years but another action keeps the stock at $20 for several years but then increases it to $40 in 5 years, which action would be better? Think of some specific corporate actions that have these general tendencies.
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