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1. Autozone Inc. has negative equity (total liabilities exceed total assets) but steadily increasing stock prices. This indicates which of the following: A. The company
1. Autozone Inc. has negative equity (total liabilities exceed total assets) but steadily increasing stock prices. This indicates which of the following:
A. The company is on the verge of declaring bankruptcy
B. The market is not efficient
C. The company maintains solvency and financial flexibility by some means other than its balance sheet.
D. The companys lenders are probably too big to fail and therefore have taken on too much risk
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