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

Question

Quizplus · Accepted Answer

Shareholder wealth is best measured by the market value of the common stock holdings as it represents the current price that investors are willing to pay for shares in the company. Book value represents the value of the company's assets minus liabilities, but does not take into account market fluctuations or investor sentiment. Historic value also does not reflect current market conditions. Compound value is a financial calculation used to determine future values based on present values and interest rates, but is not a direct measure of shareholder wealth.

Shareholder Wealth Is Measured by the ____ Value of the Shareholders