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What Does the Moody's Analytics Model Use as Equivalent to Holding

Question 103

Multiple Choice

What does the Moody's Analytics model use as equivalent to holding a call option on the assets of the firm?


A) The value of equity in a firm.
B) Total liabilities of a firm.
C) Net income of a firm.
D) Dividend yield of investments.
E) Short-term debt liabilities of a firm.

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