Shareholder wealth is measured by the ____.
A) book value of the shareholders' common stock holdings
B) market value of the shareholders' common stock holdings
C) book value of the company's assets
D) market value of the company's assets

Question

Quizplus · Accepted Answer

Shareholder wealth is measured by the market value of the shareholders' common stock holdings, as it represents the current value of the company and reflects the expectations of investors regarding the future performance and profitability of the company. Book value may not accurately reflect the true value of the company, as it only reflects the historical cost of the company's assets and liabilities. The market value of the company's assets may also not accurately reflect shareholder wealth, as it does not account for the company's debts and other obligations.

Shareholder Wealth Is Measured by the ____