Respuesta :
Answer:
Your company's stock price is a function of:
- Grow earnings per share.
- Grow average return on equity investment (ROE)
- Achieve stock price gains
- Maintain a healthy credit rating
- Achieve an image rating (brand reputation)
Explanation:
Stock price is a function of revenue growth, earnings per share growth, average ROE, credit rating, the rate of growth in the annual dividend paid to shareholders, and management’s ability to consistently deliver good results (as measured by the percentage of each year’s 5 performance targets that your company achieves).
The company´s stock price is tied to to meet company’s performance management team targets.
- Grow earnings per share.
- Grow average return on equity investment (ROE). Average ROE is defined as net income divided by the average of total shareholder equity balance at the beginning of the year and the end of the year.
- Achieve stock price gains within reach if the company meets or beats the annual EPS targets, achieves the targeted rates of return on shareholders’ equity (ROE), rewards shareholders with growing dividends, and uses its financial capabilities cautiously to repurchase shares of stock.
- Maintain a healthy credit rating.
- Achieve an image rating or brand reputation, which is a function of the company’s P/Q ratings for action cameras and UAV drones, for company’s global market shares for both action cameras and UAV drones, and company’s actions to display corporate citizenship and conduct operations in a socially responsible path.
Based on the options given, the company's stock price will be a function of the earnings per share growth, image rating, the rate of growth in the annual stock that are sold to shareholders, and the ability of the management to consistently deliver good results.
- The stock price simply refers to the proportional value of the worth of a company. It simply means the highest amount that an individual can pay for a particular stock.
- The earning per share growth of a company has an impact on the stock price of a company. When there's continuous growth on the earnings per share, people will like to invest in such stock.
- Lastly, the image rating, growth rate in the annual stock which are sold to the shareholders, and the management's ability to consistently deliver good results are also important for the rise in company's stock price.
In conclusion, the correct option is E.
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