2. Shareholder value

The primary objective of corporations

The owners of a corporation are theshareholders of the company . The primary objective of the corporate management team is tomaximize the shareholders wealth by the over the long run.

Krit Corp. is a U.S. manufacturing company based in the Midwest. As an investor, Wilson bought 100 shares of stock in Krit Corp. The stock price of Krit Corp. is currently trading at $25.00 per share.

Wilsons total wealth in Krit Corp. is:

$100.00

$400.00

$5,025.00

$2,500.00

If the stock price of Krit Corp. decreases in the next two years, Wilsons wealth in Krit Corp. will .

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