5) AACSB Critical Thinking Questions: A) Companies pay rating agencies such as Moody's and S&P to...

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5) AACSB Critical Thinking Questions: A) Companies pay rating agencies such as Moody's and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it? Textbook page: 198) B) What are the difficulties in using the PE ratio to value stock? [Textbook page: 230). 5) AACSB Critical Thinking Questions: A) Companies pay rating agencies such as Moody's and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it? Textbook page: 198) B) What are the difficulties in using the PE ratio to value stock? [Textbook page: 230).