Liquidating corporation with negative equity

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Maybe I should get in.” I then remember: “Stocks only cheap because earnings have been inflated by record-high corporate profit margins–10% versus a historical average of 6%. 2013 follows–again, profit margins stay elevated, so I keep waiting.When profit margins revert back to the mean, as they’ve done every time they’ve reached these levels in the past, S&P 500 earnings will shrink from 0 down to , lifting the index’s P/E ratio from a seemingly cheap 12 to a definitively cheap 20.” With that concern in mind, I hold off on buying stocks, and decide to instead wait for profit margins, earnings and (true) valuations to come back down to normal historical levels. 2014 after that–again, profit margins stay elevated, so I keep waiting. Investors are caught up in fears of another 2008-style financial crisis, this time arising out of schisms in the Eurozone.The S&P 500 is trading at 1200, the same price it traded at in 1998, roughly 13 years earlier, despite the fact that its earnings today are almost three times as high as they were back then.

If it lands on heads, he pays out .00 in play money to the owner.The game goes on like this until the end, at which point the final rankings are tallied and the associated monetary prizes and penalties disbursed.The key to performing well in this game is having an accurate picture of what each flip is “worth.” If you have an accurate picture of what each flip is worth, then you will know when the other players are bidding too little or too much to own it, and therefore you will know whether you should increase your bid and buy it, or stand back and let it be sold.Of course, any given flip will either land heads and pay out .00, or land tails and pay out nothing, so you will be able to say that a given flip was a good buy even though it was priced above

If it lands on heads, he pays out $2.00 in play money to the owner.

The game goes on like this until the end, at which point the final rankings are tallied and the associated monetary prizes and penalties disbursed.

The key to performing well in this game is having an accurate picture of what each flip is “worth.” If you have an accurate picture of what each flip is worth, then you will know when the other players are bidding too little or too much to own it, and therefore you will know whether you should increase your bid and buy it, or stand back and let it be sold.

Of course, any given flip will either land heads and pay out $2.00, or land tails and pay out nothing, so you will be able to say that a given flip was a good buy even though it was priced above $1.40, or that it was a good sell even though it was priced below it.

But in this game you don’t have the luxury of making decisions in hindsight. If you do that, you will realize that over a large number of flips with a green coin, heads will tend to occur 70% of the time, and tails 30% of the time.

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If it lands on heads, he pays out $2.00 in play money to the owner.The game goes on like this until the end, at which point the final rankings are tallied and the associated monetary prizes and penalties disbursed.The key to performing well in this game is having an accurate picture of what each flip is “worth.” If you have an accurate picture of what each flip is worth, then you will know when the other players are bidding too little or too much to own it, and therefore you will know whether you should increase your bid and buy it, or stand back and let it be sold.Of course, any given flip will either land heads and pay out $2.00, or land tails and pay out nothing, so you will be able to say that a given flip was a good buy even though it was priced above $1.40, or that it was a good sell even though it was priced below it.But in this game you don’t have the luxury of making decisions in hindsight. If you do that, you will realize that over a large number of flips with a green coin, heads will tend to occur 70% of the time, and tails 30% of the time.

.40, or that it was a good sell even though it was priced below it.But in this game you don’t have the luxury of making decisions in hindsight. If you do that, you will realize that over a large number of flips with a green coin, heads will tend to occur 70% of the time, and tails 30% of the time.

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