Use the AD curve and IA line to depict a case in which:
Definitions:
Solvency
The ability of a company to meet its long-term financial obligations and continue its operations in the foreseeable future.
Fair Value
The estimated market value of an asset or liability based on current conditions and acknowledged by both buyer and seller.
Assets
Economic resources owned or controlled by a business or individual, expected to provide future benefits.
Complex Capital Structure
A corporate structure that features a mix of simple and complicated financial instruments, including multiple levels of debt and equity.
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