Question

Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society? Check all that apply. Successful companies higher more employees. Most investors prefer companies that can raise prices beyond reasonable levels. Successful companies can avoid raising external funds in the financial markets. Stock price maximization requires efficient, low-cost businesses.

Answer 1

Stock price maximization requires efficient, low-cost businesses.

Step-by-step explanation:

• Intrinsic value refers to the investor's perception of the inherent value of the asset, such as the company, the stock, the option, or the real estate. Have a goal of buying the stocks and other investments as a discount to this amount.

• It also includes the discounted cash flow analysis, analysis based on the financial matrix, asset-based valuation. Their goal is to seek out stocks that are trading less. Assets independent of market values and their cash flow would include rent, inflation, maintenance, and property tax.