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| |the value of their respective company and maximize the wealth of their |Consider the set-of-contracts |
| |shareholders. |viewpoint; this viewpoint suggests |
| | |the corporate firm will attempt to |
| |What is the primary goal of the corporation? The traditional answer is |maximize the shareholders’ wealth by |
| |that managers in a corporation make decisions for the stockholders because|taking actions that increase the |
| |the stockholders own and control the corporation. If so, the goal of the |current value per share of existing |
| |corporation is to add value for the stockholders (Ross-Westerfield-Jaffee,|stock of the firm |
| |2005, pg...
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