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Which of the following goals of the firm is equivalent to the maximization of shareholder​ wealth?

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Part 1
A.Risk minimization
B.Profit maximization
C.Maximization of the total market value of the​ firm's common stock
D.None of the above

1 Answer

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Final answer:

The goal of the firm that is equivalent to the maximization of shareholders' wealth is the maximization of the total market value of the firm's common stock.

Step-by-step explanation:

The goal of the firm that is equivalent to the maximization of shareholders' wealth is C. Maximization of the total market value of the firm's common stock. When a firm's stock price increases, shareholders' wealth increases as well. This can be achieved through various means, such as increasing profits, expanding market share, and making strategic investments.

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