What are some actions that stockholders can take to ensure that management’s and stockholders’ interests are aligned?

Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a firm’s stock price from a current level of $20 to$25 in 6 months and then to $30 in 5 years, but another action keeps the stock at$20 for several years but then increases it to $40 in 5 years, which action would be better? Think of some specific corporate actions that have these general tendencies.

What are three actions you can take to maximize fuel economy?

Suppose three honest individuals gave you their estimates of Stock X’s intrinsic value. Suppose three honest individuals gave you their estimates of Stock X’s intrinsic value analyst with an excellent reputation on Wall Street, and the third person is Company X’s CFO. If the three estimates differed, in which one would you have the most confidence? Why?

Is it better for a firm’s actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain.