Question
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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