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Shareholder wealth" in a firm is represented by:the number of people employed in the firm.the book value of the firm's assets less the book value of...

Shareholder wealth" in a firm is represented by:

a.the number of people employed in the firm.
b.the book value of the firm's assets less the book value of its liabilities.
c.the amount of salary paid to its employees.
d.the market price per share of the firm's common stock.

Top Answer

d.the market price per... View the full answer

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 While calculating the shareholder wealth, market... View the full answer

1 comment
  • Incase of any clarification please ask
    • tutorObi
    • Jul 19, 2016 at 6:43pm

b.the book value of the firm's... View the full answer

4 comments
  • a and c are automatically out
    • ProfMT
    • Jul 19, 2016 at 6:40pm
  • d is not correct because it gives the market share per share only
    • ProfMT
    • Jul 19, 2016 at 6:40pm
  • Shareholder wealth is represented by the market price per share of the firm’s common stock, which, in turn, is a reflection of the firm’s investment, financing, and asset management decisions. The idea is that the success of a business decision should be judged by the effect that it ultimately has on share price.
    • ProfMT
    • Jul 19, 2016 at 6:45pm
  • d is the correct answer
    • ProfMT
    • Jul 19, 2016 at 6:46pm

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