Need help with answering to finance question

Should shareholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action would probably increase the firm’s stock price from a current level of $20 to $25 and then to $30 in 5 years — but another action would probably keep the stock at $20 for several years but then increase it to $40 in 5 years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies?

 

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