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When Might a Company Use a Big Bath

Question 63

Multiple Choice

When might a company use a Big Bath?


A) When they have had several successful years of operation and are about to issue shares.
B) When they are going to the bank to increase their borrowing limit.
C) When there has been a change in the major shareholder of the company.
D) When new management has been hired to "turn the company around."

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