It is important to evaluate a corporate manager's financial decision by measuring the effect the decision should have on the corporation's stock price if everything else were held constant.

Question

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Evaluating a corporate manager's financial decision by measuring the effect on the corporation's stock price can help assess whether the decision is likely to create or destroy shareholder value. However, it is important to note that other factors, such as market conditions and investor sentiment, can also influence a company's stock price.

It Is Important to Evaluate a Corporate Manager's Financial Decision