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Home Q & A Board Other Fields Homework Help Business Economics
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Tidy Tidy
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9 years ago
Why do corporations want to keep the price of their stock high?
A) A higher stock price increases the funds the firm can raise when it sells a given amount of stock.
B) Corporations can pay their managers lower salaries and avoid principal-agent problems when stock prices are higher.
C) Higher stock prices are correlated with lower expected profitability.
D) All of the above provide incentive for corporations to keep the price of their stock high.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
Read 401 times
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Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face
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Chimelo46Chimelo46
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9 years ago
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#2
9 years ago
The textbook reference in your signature really helped me narrow it down.

Happy to help Wink Face
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