High model 2 index indicates highly proportionate of the Company’s Stakeholders Welfare.
Model 2 admits that debt holder is the first claim owner of the liquidation value and shareholder is the residual
claim owner. But the principle of the minimal value discrepancy attainment between the debt holder and the
shareholder welfare and the welfare of stakeholder besides debt holder and shareholder is the ideal goals of
stakeholder’ s value formulation that is measured by the financial welfare index approach.