Why should credit analysts be concerned if a companys stock trades below book value? A. It means

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Why should credit analysts be concerned if a company’s stock trades below book value?

A. It means the company is probably going bankrupt.

B. It means the company will probably incur lots of debt to buy back its undervalued stock.

C. It’s a signal that the company’s asset value on its balance sheet may be impaired and have to be written down, suggesting less collateral protection for creditors.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:47 AM

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Why should credit analysts be concerned if a companys stock trades below book value? A. It means

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Fixed Income Analysis

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