Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible. However, there can be conflicts between stockholders and bondholders.

Question

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While it is true that managers generally attempt to maximize the long-run value of their firms' stocks, conflicts between stockholders and managers can arise if managers prioritize their own interests over those of the stockholders. Furthermore, conflicts can also arise between stockholders and bondholders, as bondholders may prefer that the firm focuses on stability and consistent returns, while stockholders may prefer riskier investments with the potential for higher returns.

Managers Always Attempt to Maximize the Long-Run Value of Their