Under standard accounting rules, it is possible for a company's liabilities to exceed its assets. When this

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Under standard accounting rules, it is possible for a company's liabilities to exceed its assets. When this occurs, the owners' equity is negative. Can this happen with market values? Why or why not?

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Corporate Finance

ISBN: 978-0077337629

9th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Jul 18, 2016 09:34 AM

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Under standard accounting rules, it is possible for a company's liabilities to exceed its assets. When this

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Market values can never be negative Imagine a share of stock selling for 20 This w...View the full answer

Corporate Finance

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