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The owners of a corporation are the shareholders of the company . The primary goal of the corporate management team is to maximize the shareholders

The owners of a corporation are the shareholders of the company . The primary goal of the corporate management team is tomaximize the shareholders wealth by maximizing thecompanys stock price over the long run.

Krit Corp. is a US manufacturing company based in the Midwest. As an investor, Wilson bought 200 shares of stock in Krit Corp. The stock price of Krit Corp. is currently trading at $35.00 per share.

Wilsons total wealth in Krit Corp. is:

a.$200.00

b.$571.43

(c.$7,000.00) ******

d.$9,000.00

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

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