All else being equal,shareholder value declines since higher wages reduce profits,leading to:
A) increased union activity.
B) higher unemployment.
C) lower share prices.
D) higher dividends.

Question

Quizplus · Accepted Answer

Higher wages can lead to lower profits, which can, in turn, lead to lower share prices as investors may perceive the company to be less profitable. The other choices may or may not be affected by higher wages and cannot be conclusively inferred.

All Else Being Equal,shareholder Value Declines Since Higher Wages Reduce