What is the appropriate measure used to examine whether a management is maximizing the firm's stock price?
A) Retained earnings
B) Net income
C) Cash flows
D) Earnings per share
E) Accounting profits

Question

Quizplus · Accepted Answer

Cash flows are the appropriate measure because they reflect the actual financial health and performance of a company, which directly impacts the firm's stock price.

What Is the Appropriate Measure Used to Examine Whether a Management