Final answer:
Maximizing the price of a firm's stock is true for maximizing the wealth of the firm's present owners since the shareholders are the firm's owners and a higher stock price directly increases their wealth through capital gains.
Step-by-step explanation:
The statement that maximizing the price of a share of the firm's stock is the equivalent of maximizing the wealth of the firm's present owners is true. When a firm decides to issue stock, it acknowledges that investors are looking for a return on their investment which can manifest as either dividends or capital gains. The latter involves an increase in stock value which, when shares are sold at a higher price than they were bought, translates to a direct increase in the wealth of the shareholders since they are the owners of the firm. For instance, buying a share of stock in a company like Wal-Mart for $45 and selling it later for $60 results in a $15 capital gain, enhancing the owner's wealth. Stock represents ownership in the company, and shareholders who own any portion of the company's stock are essentially owners of the company proportionate to their shareholding.