If a company reports that it is going to have a difficult time meeting its debt obligations, you would expect the Ptoday:
A) To fall since the risk-free return will rise.
B) To rise since the Dtoday will likely fall.
C) To fall since the risk premium will likely rise.
D) To remain about the same until the Dtoday actually changes.
Correct Answer:
Verified
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A)Are paid
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