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.
